Lease Option "Rent to Own" option fee

[Nate Miller]

Hi all,

I am looking to see if this is a realistic scenario for an upcoming purchase.  I've bought a two traditional rentals in Pennsylvania in the past year, and I am attempting to speed up my acquisitions by getting into lease options.

I'm purchasing this average 3/1 1970's range turnkey property subject to, in a suburb outside of Shreveport, Louisiana to turn into a lease option.

Here are the stats:

Current Value: ~$140,000

I'm putting 6k down + closing costs, after light cosmetic touches I'll be into the property for about 10k

Subject to mortgage: $101,000 3.5% $820/month PITI

Current Market Rent: $1300/month

My goal here is to sell on a lease option with a 36 month term.

Option Fee: $15,000

Rent: 1350/month with a $50 credit

Purchase Price after 36 months: $145,000 ($143,200)

Is this option fee realistic?  My entire plan here does sort of hinge on this option fee covering my down payment.  It wouldn't be the worst thing in the world if I had to keep the money tied up in there, but I figure if I can pull my down payment back, I'm fine just locking my equity in and letting go of any potential future appreciation, and just go buy another one.