how to calculate LEASE OPTIONS rental?

[Georges]

HI all

I have a newly built house, cost me about $205,000 for the home + land pack. All up purchase/build/interest cost is say $215,000.

If i were to sell today I would like to see for say $230,000.

Someone has asked me if i would like to do a Lease Options. He would like to rent from me now (rental normal is $290pw). He would like to consider buying the house in 2 years time with the lease options. How much do i charge him for the rental plus the options?

How does it work. Anyone done it before?

 

[jasper]

Heaps of different ways to do this. You get an option fee upfront, this can be any amount from the very small $10 to a few thousand or more depending on the deal. Then the person you are dealing with will pay you rent and in however many years time either buy it or not.
You need to get more numbers from the person before you will see if the deal works for you or not.

 

[agentyumi]

My friend acquired his house through lease options rental. There’s no agent involved because the seller and owner of the house is his cousin. They only have a written agreement with the lawyer’s understanding. I think he paid for a down payment of 35% and the remaining amount is to be pay monthly for 5 years plus 15% interest rate. I’m not sure though