I have been contacted by a potential lease option from an email blast on Craigslist to For Sale By Owners. Her story is as follows: Her boyfriend(who is on title) moved out 1 year ago and stopped paying on the mortgage. She has been hammering payments by working two jobs for the past year and now has come to her breaking point. She is moving out of the property and into an apt. on Oct. 18th and she has already payed the deposit. Come Nov. 1st she will stop paying the note and in turn will be truly walking away from the property. She is desperate and says that I am the only one she trusts and is open to anything at this point.
BPO(my realtor) - $359,000 for a sale of 30-60 days
1st - $211,000 - $1600.00 month
2nd - $138,000 - $300.00 month
Hoa - $210.00 month
Total monthly payment is $2,110.00 … Market rents are $1900-2200 depending on the condition and she has new carpet and new SS appliances. She really just wants to save her credit at this point. My question is can I really help her by doing a lease option? This will be my first LO and am nervous. I told her I couldn’t complete a short sale because she is not currently defaulted. What should I do? Would this be that profitable from completing a sandwich lease option?? I told her no matter what we decide on, if I pull the trigger, I will keep her informed every step of the way…should I just let this one go?? Also, the property values here in San Diego are decreasing so rapidly…I am a bit nervous as to how the profit would be made?? Please advise.