- Joined
- Jun 4, 2008
- Messages
- 1
Residential Lease OptionThis home owner is looking to stay in his house after going through a divorce. He qualified for a high interest second mortgage to payoff his ex-wife. After a few months he was not able to keep up with the payments, and began seeking alternative options to stay in his house. He earns a very good living as a Millwright. His past three T-4’s show $100,000 to $110,000 in income. He is ready and willing to do a Rent to Own which would give substantial returns to any Investor involved. We have a signed purchase and lease contracts. Below are the actual numbers. We are looking for a mortgage qualifying partner and total Investment of $75,000 which will be paid out $305 each month (to cover any line of credit). Plus capital gains in two years if the option is taken. The options is Available to be taken again in three years if he passes on the two year option. The property is located in West Edmonton, just north of the Mall (with in walking distance), and is located 8km’s from Edmonton’s downtown core. The 1260sq ft 3 bedroom split level is in terrific condition, and has three full bathrooms. It has been recently renovated and was built 18 years ago. Value: $390,000 Purchase Price $355,000
Rent $2,150 (plus 200 to go back towards future purchase.)
Buy back prices 5% (capital Gains) $420,000 (2 year) $436,000 (3 year) Based on 380K
$5000 deposit from sale and, $5000 hold back incase of late payments from sale
Expenses:
Accounting/Legal $2000
Inspection/Appraisal $700
20% Down $71,000
misc $1,300
Total Expense $75,000
Monthly Expenses
Insurance $400 / 12 = $34
Real Estate Taxes $1970 / 12 = 165 (2007 Assesment)
Debt Service
First Mortgage $1,285 @ 4.5
Investor Line of Credit Payment Credit Payment $360 @ 5%
Total Debt Service $1645 ($ 1845 Including taxes insurance)
Cash Flow Including deductions for taxes and insurance $305 Plus 200 a month paydown,
Total Cash Flow $505
Total Capital Gains
2 year mortgage balance 278485.90 + 71,000 = 349485.90 This equals 70514.10 in capital gains minus 10K and 4800 for deposit and buydown
Total 2 Year Gains $55,714
3 year mortgage balance 275537.45 + 71000 = 346537.47 This equals 89,012.55 in capital gains minus 10K and 7200 for buyback
Total 3 year Gains $74,213
These are real numbers from a contract, which is about to expire. if you are interested please act quick. I don`t want you to miss out on this deal.
Mark Nysetvold
[email protected]
780-298-6958
Feel free to call or email anytime. We are very open to inquiries.
Rent $2,150 (plus 200 to go back towards future purchase.)
Buy back prices 5% (capital Gains) $420,000 (2 year) $436,000 (3 year) Based on 380K
$5000 deposit from sale and, $5000 hold back incase of late payments from sale
Expenses:
Accounting/Legal $2000
Inspection/Appraisal $700
20% Down $71,000
misc $1,300
Total Expense $75,000
Monthly Expenses
Insurance $400 / 12 = $34
Real Estate Taxes $1970 / 12 = 165 (2007 Assesment)
Debt Service
First Mortgage $1,285 @ 4.5
Investor Line of Credit Payment Credit Payment $360 @ 5%
Total Debt Service $1645 ($ 1845 Including taxes insurance)
Cash Flow Including deductions for taxes and insurance $305 Plus 200 a month paydown,
Total Cash Flow $505
Total Capital Gains
2 year mortgage balance 278485.90 + 71,000 = 349485.90 This equals 70514.10 in capital gains minus 10K and 4800 for deposit and buydown
Total 2 Year Gains $55,714
3 year mortgage balance 275537.45 + 71000 = 346537.47 This equals 89,012.55 in capital gains minus 10K and 7200 for buyback
Total 3 year Gains $74,213
These are real numbers from a contract, which is about to expire. if you are interested please act quick. I don`t want you to miss out on this deal.
Mark Nysetvold
[email protected]
780-298-6958
Feel free to call or email anytime. We are very open to inquiries.