practice lease option analysis #1

[Dieudonne T.]

Price =$138,000	1% rule =	desired rent
	0.01	$1380
Des Moines, IA 50311
monhrent=$2,400.00  lease option 6 plex	if fully rented 3600 currently only 4 units rented
Money Needed =$5,000 option fee
MONTHLY ESPENSES
PAYMENT to seller =$1,000
tax=$200
insurance=$108
vacancy=$120	5%
repairs=$168	7%
management=$0	0%
Capex=$300	12.50%
utilities=$288	12.00%
TOTAL=$2,184	must pay= $1,596	reserves=$588
EVALUATION
MONTHLY INCOME =216.00
YEARLY CASH FLOW=2592
MY CASH ON CASH =	51.84%	8%+= good	15%+ = amazing
last sell price	1/25/2006 Sold $100,000
seller mortgage pay =767	Seller monthly cashflow =$233	seller yearly cashflow  =$2796
challenge seller must get approval from bank to lease option otherwise mortgage law broken. + Due on sell clause could one hire a property management company while lease optioning?