All Forum Posts by: Sam Giesting
Sam Giesting has started 1 posts and replied 2 times.
I would offer as an option contract. The option money paid would give me some of the equity now. I would set the option term for 24-36 months from now as the time when he can exercise the option and adjust the price to account for expected appreciation with a discount applied for a $150/month of his rent prior to the transaction.
Given the dynamics in this particular market, it will be difficult for him to secure a similar house and then fully furnish it while working 6 days per week on his contract. This way, he wins because he is "buying" the house.
I have a furnished medium term rental near an ongoing economic development site. The current tenant mentioned that he is expecting his contract to continue through 2028 and that he is considering buying in the area. It occurred to me that this might be an opportunity to offer him an option contract on the furnished house he is in with a roommate (they are very happy with the setup). This would effectively lock in a great tenant for the next few years as well as my expected appreciation while also throwing off some immediate cash for other deals.
Where can I find option contact example rent-to-own deal numbers, option contract/lease templates, and perhaps a central Indiana real estate lawyer to advise on such a small deal (house value ~$220k)?
Other advice also welcome!