How much is too much on a lease option?

I have a 2 yrs old condo (2bd,2.5bath,1c garage, 1176sq ft, partially finished bsmt) in Pontiac, MI that I want to sandwich lease with the option to purchase. A condo in the same community sold for $146K. Would I be asking for too much if I listed the condo for $160,600 on a 2 year lease with 30-45% rent credit of $1300-$1500/month? The condo mortgage is $1000/month and the neighborhood is growing rapidly.

I came up with $160,600 based on 5% appreciation/year, since the condo was purchased at $131,900 2 years ago.

I don’t know anyone personally that has done this, so I’d really appreciate your help.

Howdy REI-Newbie:

Get as much up front and monthly as you can. With an option price that high odds are they will not purchase unless it is to their benefit and the market skyrockets. If it is flat or declining later they most likely will walk if they have little to loose and find a better priced condo or a house.

Why would anyone be interested in L/O if they probably won’t end up buying, especially when they have a high monthly and/or upfront cash?

Is it better to lower the purchase price and have a higher monthly?