Can I do a "lease option" on a house I don't own outright?
I have an offer on a rental that is more than I paid for it.
They have offered to pay me $10,000 more than I paid for the house but are only approved for 70% of the price they are offering.
They offered to give me the 70% check and have me "seller finance" the remainder. I dont want to be in 2nd position for a total stranger.
As I thought about it, maybe a "LEASE OPTION" is a perfect way to get them in the house and take very good care of it as they would eventually plan to buy the home
I would close on the house and agree to the lease option at the higher sales price and they would rent from me until they were in the financial position to buy it from me
Any thoughts on pros / cons?
I thought lease options weren't allowed in texas - ( I could be wrong)
Lease options aren't illegal in Texas, but they are very risky for the seller. I would definitely have an real estate attorney draw up the contract and then abide by every term in the contract exactly.
Doesnt sound like a lease option is the right strategy for the 30% remainder.
In Texas specifically, LO are challenging. Check out http://www.lonestarlandlaw.com/Lease-Options.html
In Ohio, this would be a great opportunity for a land installment t contract. It looks like Texas provides a similar law. It would also keep you on title. If they fail to make payments in full, there are varying options to consider. Consult a Texas Real Estate Lawyer. Good luck.