First Deal, Considering a Lease Option

First Deal, Considering a Lease Option

Hi everyone, I've read quite a few threads and I know how amazing some of you are at giving advice and helping people out. So this is going to be my first real estate deal. I hope some of you will read my situation and post some advice and feedback in response.

Here's the situation. I am a college student, about one year away from graduating. I have a good job lined up that I should get for sure, but I know nothing is ever guaranteed. I have a paid summer internship and scholarships that I live on for the whole year, I don't work during the school year. I'm living in my girlfriend's mother's home. I know that sounds messy, but it's not, we all get along well. My girlfriend's mother wants to move out of this house some time during this summer, and she will be moving in with someone else. So my girlfriend and I will be left here to pay rent to her mother.

My thought is that I should propose a lease option since I plan on doing real estate regularly and this might be a great way to start. Also, the market is down, so I figure I could lock in a fairly good price. I need to learn more about lease options, like how much of the rent should reasonably go toward the down payment, etc. But I can probably find out most of that on my own. What I'm not sure about is who to go to so we can get this started, and whether or not it's even the best idea. Again, this is my first deal of any kind so I'm a little scared. I would really appreciate any advice or feedback, and I hope everything is clear.

Thanks, I'll be looking forward to responses!



Good Morning

I think thismight be a good way to start. BUT FIRST - fiish reading the book and then do the numbers. If you do a lease option, how much will actually go toward principal. Is there a down payment. What is the cost of the home. What is the FMV? Are there any repairs that need to be made?

Also, does the mother still owe on the property or is it paid for. If its paid for whay not do something like owner financing and buy the property outright with the mother holding the note - not a mortgage company.

Just a few things for you to ponder. Good luck


TWITTER - anitarny / FACEBOOK - anitarny


Thanks for the response.

Thanks for the response. I'm still working on the book but I thought I would gather information and opinions here in the mean time too. A rough estimate of the value of the home is $125,000, which I just got from zillow. It doesn't need any serious repairs that I know of. She does still owe on the property, but I'm not sure how much. I'll find out the rest of the information you asked about.