Any advise on lease option on personal home

7 Replies

I would like to know if I can do a lease to own on my own home? It's FHA and I lived in it for 2 years. I do have a mortgage of a remaining balance of $69,830.49. The rent in my area is $950-975. My mortgage payment is $669.

you should be able to lease with option your home.

 Put a sign out front and Banditsigns. around the neighborhood

 go up and down your street and ask neighbors if they know anyone that wants to buy house on the street 

 you can put an ad on craigslist 

Good luck

I wouldn't advertise "option fee" or what the purchase price is.

The only thing that you should advertise is the monthly.  Of course if someone asks you can tell them.  However it is our experience that the large majority of rent to own buyers only care about the monthly.  That price for the monthly is fine to start.  I would reduce it every 3 weeks if it is not sold.  There's plenty of room there for you to make a spread but you don't want to risk not finding a buyer because you're priced too high.

Hope that helps,

Chris Pre

Also I wouldn't advertise "option fee."

All of our properties are sold with a down payment of 3%-10% and 100% of the buyers deposit goes towards their price.  Rent does not of course.  A 10% down payment would be great but you would still make out ok if it was less.

You're probably totally fine to do a lease option. You might have a problem finding somebody who can pay the 10k option fee. Often times buyers who are going to live in a Neighborhood of $100,000 homes usually don't have that 10k cash laying around. People who are getting FHA loans on 100k houses are usually only putting down $3500 - and often times a portion of that is gifted, so your option fee might be a challenge for many of your potential buyers.