Considering “selling” a property I own as a lease w/option to purchase or Land Contract

I’ve had a property for awhile now that I originally purchased with the intent to massively renovate and move in down the line. Now those plans have changed so I’ve put it on the market. I had a contract on it in less than a week but then that one fell through. No offers since, other than an insultingly lowball offer and a few of those RE Investors that try to find a tenant-buyer.

I’ve consulted a realtor and he thinks my pricing is in line with what a fixer in the area should go for (~$100-$120 per sq ft.) and I’m currently priced at the bottom of that range ($99/sq ft)

I think there’s 2 reasons it hasn’t sold- it’s tenant occupied by a family who is currently building a home. I expect they will be moving into the new home within 1-2 weeks. As a result, the home hasn’t shown well because they have stacks on stacks on stacks of boxes waiting to move out. and 2- it needs a lot of work.

I’ve since been approached by someone asking about a lease w/option to purchase or a land contract. I’m aware of the possible issues with a land contract so it doesn’t scare me. My concern is ultimately leaving money on the table. How would I price out the back-end sales price on a lease/option to purchase or a land contract?

Additional details- I have a 15 yr mortgage on the property- currently owe ~$175K at 2.75% PITI is ~$1450/month.

I expect market rate for rent is $1000. Maybe $1200 if I put a bit into cosmetic upgrades and got natural gas or propane heat hooked up. It’s currently on electric- I did have 1 prospective buyer walk out without finishing the tour when they found out (it was in the listing too). I could reasonably put $25k-$30k into it without hurting me financially. I expect if I did that, I’d be able to make that up and more on the sale price.

submitted by /u/vyts18
[link] [comments]

I’ve had a property for awhile now that I originally purchased with the intent to massively renovate and move in down the line. Now those plans have changed so I’ve put it on the market. I had a contract on it in less than a week but then that one fell through. No offers since, other than an insultingly lowball offer and a few of those RE Investors that try to find a tenant-buyer. I’ve consulted a realtor and he thinks my pricing is in line with what a fixer in the area should go for (~$100-$120 per sq ft.) and I’m currently priced at the bottom of that range ($99/sq ft) I think there’s 2 reasons it hasn’t sold- it’s tenant occupied by a family who is currently building a home. I expect they will be moving into the new home within 1-2 weeks. As a result, the home hasn’t shown well because they have stacks on stacks on stacks of boxes waiting to move out. and 2- it needs a lot of work. I’ve since been approached by someone asking about a lease w/option to purchase or a land contract. I’m aware of the possible issues with a land contract so it doesn’t scare me. My concern is ultimately leaving money on the table. How would I price out the back-end sales price on a lease/option to purchase or a land contract? Additional details- I have a 15 yr mortgage on the property- currently owe ~$175K at 2.75% PITI is ~$1450/month. I expect market rate for rent is $1000. Maybe $1200 if I put a bit into cosmetic upgrades and got natural gas or propane heat hooked up. It’s currently on electric- I did have 1 prospective buyer walk out without finishing the tour when they found out (it was in the listing too). I could reasonably put $25k-$30k into it without hurting me financially. I expect if I did that, I’d be able to make that up and more on the sale price. submitted by /u/vyts18 [link] [comments]

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