I want to l/o or l/p my home to someone. I’m moving to Phx. I have $35K or so in repairs to do to home. There are actually two homes on the 5 acre prop. I’ve never done this before. Entire prop worth about $285 or $300K now, but with repairs done I’d list home for $400 or $425K.
What % would I ask for the down- ten or so, and of the current price or the fixed up price? I was thinking of having the TB do the repairs. What about l/o for home but I continue to rent out the back house to someone ELSE until the option is used? I’ve read some about this, but don’t know alot.
It might be tough to lease option a property to someone if it needs 35k in repairs. Unless of course you are offering a sizable discount for them doing the work or you are in a VERY hot market.
You may offer it where they do the work for the option on the property but then again, it would depend on what and how much needs to be done. 35k buys alot of repairs where I live.
If I were you, I would do the repairs and list. Seems like alot less effort really.
offer it as a lease option handy man special - rent out the back - I agree - or let them do it - have them pay you the full amount for both rental rates - they reap the rewards of the rehab…
I think you can option this property for $339,900 - with $4000 option fee (not sure on the rental rates for both homes) - the rest of the profit can be theirs - advertise something like this:
XXXX town - Handy man special - you reap the rewards for $50,000+ in potential gain! You can even have income on the property while you live there - inlaws or income home on the property… $4000 option fee $xxxx per month, phone number
you might want to discribe it a little, etc… you do the low down on this - and then in the option contract with your buyer - have due dates of when they will have specific items completed - or they have to pay more option fee - which you can use to complete the work they were suppose to complete.
if you don’t get many bites change the ad or do some of the repairs… but there are buyers who do love to do handy man work…
Wendy Patton