Hello Everyone. I have a deal that I would appreciated a second set of eyes on. The property is located in Leduc, Alberta. The property is a newly built (4years old), half duplex, 3 bedroom, 2 bath, 1300 sq.ft., large lot but no garage. I plan on purchasing the property under an agreement for sale.
Purchase Summary
The purchase price $280,000
Existing Mortgage - $267,000, which expires in 1.5 years (Oct 2012)
Monthly Payments - PIT ` $2200 / month
Deposit Required - $13,000
Legal - $ 1,500
Cash To close - $15,000.
I am proposing to turn this property into a rent to own, property with a term of one year. This is shorter then I would like, but I have but into the offer that I have the option to renew term for additional time if required.
Current Estimated Value of the property is $300,000.
Sale Price to Rent to Own Tenant - $310,000. Based on a one term rent to own option.
In checking the rental price in the Leduc area, there does not seem to be a lot of properties for rent, but also the rent is lower then I initially expected. The average rent seemed to be between 1700 to 2000/ month. I am concerned that the min. monthly payment of $ 2400 + option payment would asking to much. Also I would require a deposit of at least $15,000 +. Am I being optimistic with these numbers?
Any input would be greatly appreciated. Should I do further investigation or walk from the deal.
Sean Nicoll
Purchase Summary
The purchase price $280,000
Existing Mortgage - $267,000, which expires in 1.5 years (Oct 2012)
Monthly Payments - PIT ` $2200 / month
Deposit Required - $13,000
Legal - $ 1,500
Cash To close - $15,000.
I am proposing to turn this property into a rent to own, property with a term of one year. This is shorter then I would like, but I have but into the offer that I have the option to renew term for additional time if required.
Current Estimated Value of the property is $300,000.
Sale Price to Rent to Own Tenant - $310,000. Based on a one term rent to own option.
In checking the rental price in the Leduc area, there does not seem to be a lot of properties for rent, but also the rent is lower then I initially expected. The average rent seemed to be between 1700 to 2000/ month. I am concerned that the min. monthly payment of $ 2400 + option payment would asking to much. Also I would require a deposit of at least $15,000 +. Am I being optimistic with these numbers?
Any input would be greatly appreciated. Should I do further investigation or walk from the deal.
Sean Nicoll