Attractive Lease to Own Terms?
Moving away from Hawaii and trying to make renting my primary make sense. My mortgage is $4500 but going rent for the area is $4,095 and not in need of loss of profit for tax purposes and needing more equity to make the investment worth it.
Are these attractive terms for a housing market that appreciates on average 6%?
-Lease to buy @ $930,000 (currently appraised at $890,000)
-2 year term with option to purchase at the end of term
-Non refundable 3% option fee of $27,900
-Rent $4700/month
If purchasing at end of term: Option fee applied to purchase and 10% of all combined monthly rent
If not purchasing: Option fee is non refundable
Seller able to break contract anytime with 60 days notice if agrees to pay renter 2x amount of option fee.
Renter may break contract early with $5,000 penalty and 30 days notice
Additional context: Hawaii is a hard market for locals and first time homeowners to enter.