In today's real estate market investors are being faced with some difficult decisions on what to do with their single family investment homes. Dump the house, probably for a loss, Rent the house, probably for less than the monthly mortgage payments, or lease purchase.
As an investment property owner I am currently lease purchasing a few homes. A few of my favorite features are 1. the non-refundable deposit, 2. a pre-negotiated sale price at the end of the two years, and 3. not having the same responsibilities as a renter (landlord tenant act).
Also, due to the lack of available loans for the average person, an average down payment (non-refundable) can be anywhere from $5,000 to $20,000.
Therefore, if your monthly lease payment doesn't cover your mortgage payment then the down payment should cover the difference and probably provide a positive monthly cash flow.
I am a fan of the lease purchase for my own investment properties.
Mat Curtner/Realtor
J.Roberts & Company
480-570-4913
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