Deal or no deal?
Hello,
I am trying to decide to purchase a pretty house that is in a great neighborhood but at market value. The house is a 3/2 and 2 car garage, brand new hardwood floors, built in 2003, fireplace, gourmet kitchen, low HOA, no CDD, community pool nearby, family friendly, and in an area with lots of new construction and development. The problem is the seller wants market value, ARV. She is a FSBO.
My exit strategy is to do a purchase lease option. So, after the purchase of the house, set up a tenant/buyer to pay 10 percent as the non refundable option consideration and after all is said and done a $300 cash flow each month. (PITI, PMI, HOA fee, 5% vacancy all included in the rent).
Question: Would you buy a house like this at the market value?