Now Gold Beach has a lot of restrictions on STRs but I thought this was an interesting thought exercise.

If the Tenant Buyer walks away from the deal I get to keep his Option payment, since it is non-refundable and I sell to another Tenant Buyer and get another Option Payment usually about $20k to $25k.I encourage buyers to get qualified for financing, give them a mortgage broker contact and to plan their lifestyle to be able to get a loan to exercise the Option.

We actually built a simple Buy Box exercise that we use at our Candor Meetups in Worcester, Lowell, Waltham, Portsmouth, Manchester, Biddeford, Northboro, and Medford, and we walk all our new clients through it.

Keep doing the exercise of running the numbers.

Everyone is different, but this is an exercise I recently considered....

Don’t advertise the option price upfrontYou’re right, almost nobody posts it publicly.Not because it’s a secret, but because:You need to confirm they can actually qualify to exercise the optionYou need to verify their timeline + income + creditYou want the flexibility to adjust the strike price based on market data at the time they’re screenedThe proper flow is:Advertise it as “Rent-to-Own / Lease Option”Screen them like a normal tenant (income, background, rental history)Once approved, then present the option structure, option fee, strike price, and timelineIf you share it too early, you get tire-kickers who want an option fee refund when they get denied.

***My Out of Pocket $36,909.07Option Fee To Me $20,000.00My Adjusted Out of Pocket $16,909.07******My Cash Flow * $ 982.00 monthly**So, I sold it for $20,000 more than street value, I get tax write offs, I got $20,000 back immediately as an Option fee, I cash flow at $982.00 a month and if they exercise their Option, I’ll get $146,854.63 (minus the $20,000 Option fee) equals $126,854.63 cash along with any pay down during their Option period.

Raphael’s from New York and just getting started building his portfolio as we focus on investing down South.Outside of real estate, we love exercising, traveling, cooking, and spending time with family and friends.

I have had tenants take both options, but the only time when the tenant exercised the two months option that took me more than 2 months to fill was a Dec vacancy.  

That said, I know that is going to over a year to get necessary approvals and want to stress test a Minimum Viable Product exercise in case the redevelopment doesn't pay off.