I currently live in California, bring home about $2200( if I work overtime $3300) a month,have had some credit issues, that I am working out. I plan on taking advantage of any 1st time buyer programs or down payment assistance. I am single so the california market has nothing for mewith my credit issues & income, so I’m moving to were I can actually afford a home & eat :biggrin. I am interested in flipping. I currently work out of the home, so I have the oportunity to take the money I make to Georgia. I don’t want to waste money renting, so I’m looking into lease to own option will I handle my credit issues. My question is , is this a good start, if after I’m able to get my own financing to flip it.
It depends, on the price you pay and the prices are being sold for in the area you buy. Don’t count on appreciation to give you a guarantee profit if you don’t plan on living there long because home prices will continue to drop like a goon wearing cement shoes dropped in the river.
Don’t buy just to buy, that is a quick road to being even more broke. What is your time frame for staightening out your credit issues?
Typically you have only a couple of things that can be negotiated on a contract price, terms, and repairs. Generally the less repairs that you ask for and the less terms the lower you can get the price.
What I am saying is, if you can get your score up enough in the next 6 months you may want to hold off. Other wise you could end up with a high int rate on a lease option, plus end up having to pay more for the home becasue you wanted term.
This is not to say that if the right deal comes along dont take it. If a great deal comes along at say 65-70% FMV, and you can get decent terms then you may want to take it.
Do pay atttention to the trends in your market, if the market is slipping then a home purchased at 70% fmv today could be 80% FMV in a month or two.
I hope this helps
Thank you for your response, correct me if I’m wrong, but I thought if I am leaseina a property with the option to buy, the terms of the lease (12-24 month term) was so I could better improve my FICO score to qualify for financing, when I exercise the the option to buy.
Nevertheless $150,000 is my limit & I’m having no luck in California finding something around that price range.
A Rent-To-Own is a wise move to break into home ownership. . .assuming you, as the tenant/buyer, buy right and use agreements that protect your interest and position in the deal.
As is often the case, it comes down to dealing with a motivated seller. And in current market conditions, that is not such a difficult task.
Does anyone know of any website were I can get a contract that protects my interest as the tenant/buyer? Should I do a title search before signing anything to make sure there is no Sub2?
Pick up his manual, it’s worth the $.