BiggerPockets

First, why would you take it off the market? Leave it on the market. You don't need to be there for closing. If you can sell it, that's the best option.

Can you spiff it up, and set the price so its the best deal in the area? That's how you get a quick sale.

If a rental won't work, a lease option may not, either. I can't tell what you think you would get for rent. Whether its $1150 or $1350, its a bad rental if you can sell for $185K. Better to sell and be done with it.

A lease option might get you slightly higher rent, and might get you some option money, but its really a rental with all the associated headaches.

Option price can be set however you and the buyer agree to. Given that prices are likely to fall, it may be to your advantage to set the price now. But if prices fall to the point where that's no longer a good price, the buyer will either want to renegotiate or will just walk away.

No idea how long it will take. How long does it take to get something rented in your area? You can guess at that by watching "for rent" signs come and go. Getting a tenant/buyer will take somewhat longer.

First, you're going to need to know any state laws and regulations regarding lease options. Then, you'll need a good lease and a good option contract. If you can find other investors in the area, they may be able to help you. Otherwise, you may have to get a lawyer to draw them up. Then, figure out what you want for option money, rent, and deposit, and start advertising. Figure out how you're going to screen tenants, both just as tenants (credit report, criminal background, eviction check, employment, etc, look in the landlording forum for a sticky thread on this topic) as well as for their ability to buy.

Well, the house is currently "FSBO". I really don't want to sell it using an agent right now, because the commissions would almost completely wipe out any equity we would receive. Market rental I'm sure would go for around 1100-1150. The rentals in my area go quick.

And the area, "Chesapeake, VA" has actually seen a steady rising in values of the properties out here. One of the few places that have in Virginia. I would just really like to find a way to hold onto it, just a bit longer. We planned on being here longer, but received last minute orders to leave across country.

I've had agents come through, all saying it shows well. I currently have it listed on
http://www.forsalebyowner.com/listing/8DC9F

I have no problem, going to a lawyer to write up the contracts, I think it would be better done in that way for the time being.

I currently have it listed at 179,500, which is pretty aggressively priced. One just like our sold at 184,000 a month in a half ago. Not in as good condition. It was appraised at 187,000. We just really want to hold it somehow.

Why not do a lease option?

Well, that's a bummer. I figure we're going to have to take a loss even if it is around 200 in that case. Because either we get some people in the property to cover the mortgage, or we pay the full mortgage each month until it gets' sold, even if we do decide to take on a realtor. We have to leave on the 2nd of March. And we will be paying for our place in San Diego. So I think regardless, we're going to end up renting, and are prepared for the loss, if that's what's necessary. I figure it's better than paying for the whole amount of the mortgage.

Yes, we did get 100 percent financing with our VA LOAN. All of our insurance/taxes are included in the mortgage. Take that away, the morgage comes out to a little over 1000 a month, but it is included in our payments automatically.

We haven't had any issues with making payments or anything. It's only the timing & lack of timing we have available now, which has handed us our difficult circumstances.

The address on Still Harbor actually sold at that low price, because the people were military, and had to leave too. So they listed it significantly undervalue. I know this because he came to look at our home during an open house.

I just would hate to sell it at such a low price, just to get rid of it.

I don't know. ??

It would be easier if we didn't have to leave so quick, but that's what we gotta do.

Unfortunately for you, a forced job relocation is one of the things investors look for to snag a good deal. I think in your situation buying a house is a bad idea. As you see, the transaction costs are exorbitant. You bought it just over two years ago. Under normal circumstances, you're going to take a loss if you buy and sell two and a half years later. You just won't get enough appreciation to cover the transaction costs.

Had you bought in 2004 and sold in 2006, you would have been smelling like a rose. Those were unusual times. Now we have unusual times in the opposite direction.

If you think you're going to have to move every two-three years, you should only buy if you can put 10% down, and you're willing to walk away with nothing at the end. That is, just add that 10% down payment to the payments.

Looking on realtor.com, I see seven similar properties within about half a mile of you. Two are listed right at $200K. The other five are listed at $175K. I don't know exactly what these look like (you should, you should look inside all of them.) But were I looking in this area, I would see you're as being on the higher end. Plus, I wouldn't even see yours. I'd make sure your's looks better than any of those other seven, price it lower, and get it on the MLS. I'd price it at $169K is I was willing to make a few more payments, probably $165 if I was doing a fix and flip and wanted it to move quickly.

Rentometer puts rent for your unit at $950. I find it to be on the high end. So, even as a lease option, you're probably just barely covering the PITI payment, if not coming out of pocket a bit.

Sorry. This is a bad situation. Like you, I've been in the position of having to move before a house is sold. Its unpleasant making two payments or rent plus a payment while waiting for it to sell.

Just an Opinion:

As an investor, here's what I'd do if I were in your situation (bear in mind this is just my own opinion. If you want professional advice, you should always seek competent legal counsel from a broker or an attorney):

1- Do a cash-out REFI of the property BEFORE moving to give me some liquid cash.

2- Lease Option the property, but have the entire process run by my investor's club (they handle property managment, maintenance, tenant contracts and a TON of other stuff so I don't have to myself).

3- Use a portion of the liquid cash to purchase another property. If you end up living on-base, then you'd have to drop around 20% into an investment property, but if you did the REFI, you should have plenty to play with under the right circumstances. If you're NOT living on-base, only 3-5% down should suffice, meaning you may be able to purchase two properties for a total of 3.

4- Sell the LO property after two years, and use the proceeds to purchase another two investment properties.

You get the idea... keep leapfrogging the returns into the next few properties, and after a while you'll have more net worth than you can shake a stick at, and your positive cash flow should be high enough to cover you in the event of another military relocation.

This is obviously just a napkin drawing. If you want more details [SOLICITATION REMOVED]

Let me know how it goes,

Best Regards,

Tim.

P.S.- Lease Options CAN be the right answer if they're done right: win-win. [ANOTHER SOLICITATION REMOVED BY ADMIN]