In and out in 3 years – 1 tenant (lease to buy option) [Code 2351] – St Louis

This is a unique situation

We have a lease-to-buy person who needs 3 years to be ready to buy the house back from you – the investor-owner.

MORE info, analysis and photos – http://reistart.com/iRZwd

The plan is

• You buy this house (asking is $390k but we believe it can be bought for $350k)
• A tenant would pay $10,000 in option fee
  • Lease option fees are typically non-refundable if they don’t exercise the option the owner would have the prerogative to extend it or not
• Rent it for $2500/mo for 3 years
• Buy the house back for $50,000 more ($400,000)
• The tenant would take care of maintenance

Benefits/Who Should Consider it

• An investor who is looking for a “shorter” term position – ie sell w/in 3 years 
• This type of lease-to-buy reduces the chances of tenant turnover, a property manager may not be required, no leasing fee – this is an opportunity to have a less “noise” 
• We are exploring w/ the lease-tenant about payment of the HOA fee – this means it is likely the owner will have an additional $342/mo in cashflow!!
• Projected annual cashflow is $5100 – $9400 (based on the HOA)
  

The House

• A similar (250 sq ft smaller) house in the community is listed for $430k (on the market for ~35 days)
• It is 2 bedrooms + a loft on a cul-de-sac surrounded by trees and beautiful landscaping
• The finished lower level has a rec area, office, full bathroom, storage, and laundry room.
• HOA amenities include a pond with fountain, clubhouse, tennis court & pool.
• HOA includes landscaping, including gutter cleaning and more

Guarantees

• Like any other lease or investment, there is always the chance the tenant won't exercise the option

MORE info, analysis and photos – http://reistart.com/iRZwd