I need help!

Was assigned a property for 175k, FMV is 229k. I’m planning to rent to own the property. Rent it out for $1500, to make positive cash flow. And credit $200 towards closing cost or down payment once the option is exercised. Would do this be a great deal? Or rather just sell the property and make a quick cash of $20-25k?

I think only you can answer your question. The questions are too individualistic for the rest of us to answer. There are different tax consequences. We don’t know your other income sources and how badly you need or want immediate pay-off vs. making modest PCF for now. Do you want to be a landlord or are you already? What is your market like? etc., etc.

You need to sell it…if you think that you can rent a $175K property for $1500, give a $200 a month rent credit and still cashflow, you may not be ready for the landlord world…

With these numbers, cashflow will unlikely happen!


renting is not the best route, especially with the equity. I don’t know how the market is in your area but i would buy the property 70 cents on a dollar, fix it up and sell it at fmv and have positve cash flow.but then again its not my decision…