I need some advice for a ML deal that’s unorthodox. I have an immediate family member who is getting his life back in order and needs a place to lease. There is a 3/2 in a good location for lease by an agent that’s been on the market for 6 months plus that would work. Owner has it free and clear but is in a nursing home and daughters want the rent to pay for the nursing home. The house needs updating and they’re asking rent for $2350 which is overpriced for the market and house quality ($1750-$2k would be about right).
My family member can afford the rent and even eventually purchase so I’m trying to make this a better deal with a lease-option.
3 annual payments of $23500 for a 3-year lease;
$5k for an option (with an option to extend another 3 yrs; both going towards eventual purchase);
$8K annual credit toward an eventual purchase.
Purchase price to be determined by appraisal/comps upon execution. Current comps are at $275K for houses in similar conditions (unrenovated). I think the FMV for house is a top dollar in this market and price comps will decline in 36 months.
I’m trying to lease myself, sublease to the family member, gain equity through option and either help family member close or sell the option in 36-72 months.
Agent says the daughters don’t like the credits nor length of the lease. Not sure if he’s helping or hurting.
I’m trying to get the agent to let me meet with them on Thursday. We shall see.
Any thoughts? Advice? I don’t know if the option idea is a good one. I’m trying to stall for time since the market feels heated.