[Trevor Waltho]

Trevor Waltho

I would like to understand, when figuring the monthly payment to the owner of a property that I want to do a lease with option, would you include the taxes? Example say their monthly payment was $1000.00 ?PITI?. Say I could rent the property for $1350.00 a month and the taxes are $325.00 do I base my payment to them as thought I’m including those taxes before any principle is paid down?????

[Gary Johnston]

Gary Johnston

Trevor,

My recommendation is don’t even mention taxes. Taxes and insurance are the owner’s responsibility. For example, you pay them $1000 for the lease with $300 month credit towards your option. Keep it simple.