Sorry, but it’s not making sense. At least to thick headed me.
First, are you sure that $383k is a good buy for your market? If so, she “wants $50k”? If you agree, when is she going to get that and how? I don’t think you have $50k otherwise you wouln’t want to do a sandwich L/O.
Lease Option for 3 yrs, then sandwich from then on? Why? Are you going to live in the house for three years?
Why would the seller agree to let you L/O for only the payments if she wants $50k for her equity? If you start the sandwich after 3 yrs, that would mean 5 yrs or so before she saw a dime. Why would she agree to anything like this?
Do you have substantial assets and experience for her to agree to your proposal? If you are just a broke newbie, she would have to be desperate to agree. If she is that motivated then she would sell for less than $383k.
This doesn’t add up. Then your questions about the option fee, mo pymts, renter’s credit is telling me you need to do a little more studying before jumping into this expensive a property.
A lot of knowledgable investors won’t touch Sandwich L/Os. Even with a clear cut deal. Bone up on the books, come back here and we’ll be glad to help.
Maximus, whether or not the deal is a good one is dependent upon the numbers.
First, verify the numbers you are touting are accurate. Double check the FMV of the property. Keep in mind you are in an area of the country where real estate is getting whacked. Err on the side of conservative.
Then verify the rental market. How much can this property rent for? That will determine how much you can afford to pay the homeowner and how much you can expect to receive from your t/b.
How much option money can you expect? Hard to say. Each area is different. My neck of the woods I can expect between two and three percent. Your mileage may vary. Let the t/b tell you. You may be pleasantly surprised.
One more thing. To repeat what Gerald wrote, you seem to be new at this, which is fine. We all were at one time. But you have some very basic questions, which tells me you might not yet be ready to do this deal. Be careful.
One more thing: what are you doing with regards to paperwork?