I have advertised my half duplex as a lease option. I have a basic understanding of how lease options work, however, I am at a loss for how much I should credit back to the renter "purchaser" out of the total rent. eg. mortgage is for $1150 per month shall I set the lease option rent at $1500. This is $350 cash flow how much of this $350 do I credit back upon tenant exercising their purchase option.
Rent to own (lease options)
- Thread starter ronda
- Start date
This is not a simple answer. How much are they putting down up front? How long is the term? How long do they need before they qualify for a mortgage?
I try to have my clients have a minimum 7% down of the purchase price at the end of the term
It also depends on the return your looking to achieve. I have my RTO analyzer I believe it is on the myreinspace. Other than that it is available in my book link to amazon http://amzn.to/aQH1Ej
Regards,
I try to have my clients have a minimum 7% down of the purchase price at the end of the term
It also depends on the return your looking to achieve. I have my RTO analyzer I believe it is on the myreinspace. Other than that it is available in my book link to amazon http://amzn.to/aQH1Ej
Regards,