Lease Option - Marketing/Feasibility 500k+ South Florida Market

[Harold Carter]

Hi Everyone,

I have a house that I just finished completely remodeling.  Was thinking of renting or selling, but then came across the idea of lease option.

What I am noticing in my community is some houses move quickly, while others are stale.  Also have seen a couple realtors, recently, list houses slightly below market value to make the quick commission, which has a negative impact on the comparables for the short term, which is why I am looking into the lease option approach. Also, if the market declines, the lease option downpayment can hedge my risk.

The house is worth about 510k-520k.  Market rent is about 3,300 a month including lawn, pool and pest control. 

What is a realistic expectation of lease option terms?  I'd like to have a bigger downpayment if possible vs credit for larger monthly payment.  

Where should I market my property? I am thinking the MLS is not going to attract many rent-to-own people.

This is what I was thinking:

    Sale Price: greater of 520,000 OR index + markup (i.e. tax assessor value + 140,000) 

    Downpayment: 25,000

    Term: 2 years

    Monthly rent: 3,000 (tenant pays for all maintenance, instead of 3,300 and I pay maintenance)