Lease Option/Straight Option

Good Evening All!

I hope everyone on here have a Happy 2005! This year is going to bring about many new beginnings for the new and experienced investor alike.

Here is my scenario:

I went to EBAY to do a search on owner financing. I found a house for sale outside Houston, TX. I am in California (Long Beach to be exact). Here are the numbers on the house for sale:

[b]Age: 6 years
2917 sq ft
3 bed/3 bath/2 car garage
Seller wants $16,000 as a down payment.

Remaining Balance: $185,996.51
Monthly Payment: $2665 (includes principal, interest, tax, insurance)
Comparable Sales: $250,000

Equity vs Comp Sales: $64,004.49
Proposed Rent: $2800-$3000 per month
Cash Flow: $200+ per month

No repairs needed, home is in perfect condition inside and out.

New Carpet, Very Clean. Beatiful Kitchen. Great School district. 8 swimming pools, hiking and biking trails, tennis and basketball courts, playgrounds, 18-hole championship golf course and club house. [/b]

Here is what I want to do: Contact the seller and submit an offer of $200,000 ALL CASH on a Straight Option. I want to help the seller sell the house within 45-60 days. My exit strategy: sell to a family for $245,000 cash through a conventional loan or lease option to a family with less than perfect credit for $260,000 on a 5 year lease with an option to buy.

The owner seems motivated and the house to me looks like a winner so far. I always call sellers and figure out the numbers then call them back within 24 hours with my response.

By the way, the owners are located in Sacramento, and the property is in a land trust.

Any and all ideas would be appreciated. Have a good evening.

Howdy PBDunbar:

The seller is having a hard time getting $200,000. What are you going to do different to get $245,000 cash or $260,000 owner financed and living 3000 miles away at that. who will be making the payment while you try to sell? How much will the option cost you? Double chect the comps and see how long on market at those prices. Great if you could pull it off but i would leave no stone unturned.