lease with option to buy

lease with option to buy

Bronx, NY · Member since 2016 · 115 posts · 21 votes

Hello BP its me again with another question. 

can anyone who has dealt with a lease with option to buy, discuss how that type of financing works or does not work well. 

I want a multifamily in the Bronx area and here in NYC prices are high and this down payments are high. A lease with option to buy sounds like a good idea where let say i am halfway to saving up cash for the down payment, i can get a lease with option to buy and save up the rest of the cash for the down payment. 

any experience, knowledge, ideas and wisdom is greatly appreciated. 

thank you BP. 

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  • Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
    10y

    The problem isn't doing the lease with an option, its finding a seller who is willing to sell with that method. In NY everyone wants top dollar and wants all their money upfront! If you're good with negotiating you might be able to get someone to see the benefits... I'd love to get another property that way too.  You might be able to find another investor who rehabs and resells on a Lease Option, but then you'd be paying a premium (I also haven't seen that for multis, normally singles/condos).

  • Bronx, NY · Member since 2016 · 115 posts · 21 votes
    10y

    @Nicole (Dunlap) Pendergrass

    Thank you for your input. 

    I see what you are saying. also, would the property have to be free and clear ? 

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