Seller Willing to do Lease Option...

[Kendra Williams]

Hi BP, I have a seller who is willing to do a lease option. He, through his realtor, actually brought it to me. I'm wondering how this will benefit me and if it's the best thing to do in my situation. It's a 4-plex that is within a few miles of where I live. There are 3 one bedrooms and 1 two bedrooms. The monthly rent rolls total $2100. The owner usually pays all the utilities. The taxes are $2943.90. His selling price is $139,500. I will offer $125,000. He owns is free and clear and wants to get rid of it. It's assessed at $150,000 through the county site, it was $190,000 last year...and I know it's not the best estimate. I would think the $150K is low based off of other properties the same size. Please give me some feedback. I go to meet with the realtors tomorrow and this will be my first investment deal.

I would like to use the potential equity I acquire to make more deals. Before I start that please give me feedback on the numbers, any more insight you have on lease options is also greatly appreciated.

Thanks,
Kendra

[Just Don]

check out utility costs with a fine tooth comb. Those big multi families suck alot of juice and fuel,,not to mention water from multiple faucet drips and hidden stool running thru HUGE amounts quickly. Tenants like to waste your money. Check into getting things separate metered and or high efficiency style upgrades. If wiring is old insist on CFL bulbs to cut down draw and cost. NO sun lamps or space heaters.