Anyone have any experience with lease with option to buy for real estate?
 

I want to sell my house but its a slow market here and my house is twice the amount of the average priced house which will make it even harder to sell so I was thinking of doing a lease with option to buy. Any of you real estate guys have any experience with this?

I don't think that will work now a days, if someone can't afford your house now, they probably won't be able to afford it down the road when interest rates go up...

yeah i have done it. It is all about screening. Also make sure the lease and option are two seperate agreements.

Big trouble spots that i saw. The person develops an equity situation through the option and you are forced to foreclose versus evict. Your lawyer can clean that up but make sure it is a true lease that can be evicted on. You are now a landlord. You need to screen the fuck out of them.

The option side is open it is hard to advise but try to stay away from super long ones. The length changes how your state sees it. 100 years is way different then say 2-3.

Thats my biggest concern, I knew someone that had that happen years ago. They had to foreclose rather than evict and it was a huge pain in the ass not to mention the person was able to live there almost a year rent free. So is that the purpose of having two seperate agreements?

As far as numbers go, lets say my property is worth about $540,000. What would be considered fair for the monthly lease and down? I was thinking about $15,000 down and anywhere from $3,000 to $3,500 a month, does that sound close?