Hi I have assumed a loan for $118,000
paid the sellers $15,000
Total Cost to me is $133,000 final
The ARV of the property is $157,000
I’m planning to do lease to purchase. The rent around the area is approx $1395/mth and my monthly mtg payment is$1,000.
Am I thinking right?? Can I wholesale this property or lease option is the best thing
Depends on what your goals are really. You can get a nice cash flow from an L/O or you can do an owner finance deal where you act as the “bank” and the buyer of your property makes monthly payments to you as a mortgage payment. Another avenue that you might want to give some thought to.
If you going to lease option,then always make your asking price more.plus asked for more rent to apply to his down payment which you could match dollar for dollar.Look at the numbers:
arv $157.000,asked for $170000,purchase/ option,try and get at least $5000 non-refundable deposit,rent 1395 plus get get more say $200 extra $1595-$1000=595 positive cash flow.
The next time you buy another house don’t put down $15,000 down how many house can you by?put down as least as you can you want to get in light.