We have a deal that we are working on and we have negotiated with the Seller to purchase their house through an AFS.
Details are as follows:
Existing Mortgage $298,500 – Expires in 2019 ( 3 yr deal)
Mortgage Payment + Property Tax + Insurance $1850
Purchase Price $329,500
Seller Equity 2016 $8,000
Seller Equity 2019 $23,000
Estimated Value (Current) $340,000
Estimated rent for similar properties $2,100
(4 beds, 2 bath, double car garage, nice looking property)
We are looking at one of the following 2 options:
1) Sell the property to a rent to own buyer. Being as our first rent to own property. We are thinking something to the following.
Sell the property at ~ $ 360,000 (based on 2% App. Rate of $340,000)
Rent $2100/month
Monthly Option payment $ 250 depending on initial down payment (assuming a 5% down payment in 2019)
Initial Option Payment $ 10,000 to 15,000 depending on the buyer.
2) Standard rental and sell in the future.
We just have a couple of questions:
1) How easy will it be to find a rent to own buyer?
2) What are your thoughts on our exit strategy? and the future mark-up of the property
Any additional thoughts, comments or advice would be greatly appreciated…we are just having a bit of a “what do we do if we get it” moment.
Thanks so much!
Sean & Leona
Details are as follows:
Existing Mortgage $298,500 – Expires in 2019 ( 3 yr deal)
Mortgage Payment + Property Tax + Insurance $1850
Purchase Price $329,500
Seller Equity 2016 $8,000
Seller Equity 2019 $23,000
Estimated Value (Current) $340,000
Estimated rent for similar properties $2,100
(4 beds, 2 bath, double car garage, nice looking property)
We are looking at one of the following 2 options:
1) Sell the property to a rent to own buyer. Being as our first rent to own property. We are thinking something to the following.
Sell the property at ~ $ 360,000 (based on 2% App. Rate of $340,000)
Rent $2100/month
Monthly Option payment $ 250 depending on initial down payment (assuming a 5% down payment in 2019)
Initial Option Payment $ 10,000 to 15,000 depending on the buyer.
2) Standard rental and sell in the future.
We just have a couple of questions:
1) How easy will it be to find a rent to own buyer?
2) What are your thoughts on our exit strategy? and the future mark-up of the property
Any additional thoughts, comments or advice would be greatly appreciated…we are just having a bit of a “what do we do if we get it” moment.

Thanks so much!
Sean & Leona