Residential investors: another slam-dunk lease option investment is up for grabs. New construction home at 15% below list price, a 2-year lease signed and 1st month’s rent secured before you close, and a $23,000 profit upon the option sale after 2 years. Monthly cash flow? $350+ with 20% down.
This one is a new construction Lennar home in the Spring area of Suburban Northwest Houston. We’ve negotiated the builder’s price down by 15%: from $133,900 to $113,900. The monthly rent will be $1,250 and the lease-option term is 2 years.
- Subject Home: ~1900 sqft, 3/2/2
- Community: Lennar - Cypress Terrace (see map)
- List Price: $133,900
- Negotiated Price: $113,900
- Monthly Rent: $1,250
- Net Operating Income: $955/mo
- Cash Flow @ 20% Down: $360/mo (approx., includes taxes, insurance, mortgage, and estimated maintenance)
- Cash Flow @ 25% Down: $440/mo (approx., includes taxes, insurance, mortgage, and estimated maintenance)
- Option Purchase Price at Year 1: $135,000
- Option Purchase Price at Year 2: $137,000
The tenants are ready to move immediately — once we have a verbal agreement from all parties, we will secure the 1st month’s rent and have a lease prepared before the investor signs a purchase agreement.
Contact Johnny Schiro via email or at 281.627.2486 for more information. More information about our lease-option program can be found here. Financial details and analysis below.
| 2602 Mequite Ridge | |||||
| Proposed Subject Info | |||||
| Market Value | $133,990 | Sqft | 1,900 | ||
| Target Price | $113,990 | Units | 3 | ||
| Target Price/Value Ratio | 85% | Year Built | 2008 | ||
| Price Per Sq. Ft | $59.99 | ||||
| Income & Expense Information | |||||
| income | expenses | ||||
| monthly | annually | monthly | annually | ||
| Gross Rent | $1,300 | $15,600 | Taxes | $250 | $3,000 |
| Insurance | $58 | $700 | |||
| HOA | $21 | $250 | |||
| Maintenance | $16 | $190 | |||
| Adjusted Income | $1,300 | $15,600 | Total Fixed Expenses | $345 | $4,140 |
| Projected Mortgage Options | |||||
| Fixed 80% LTV option | Fixed 75% LTV option | ||||
| Loan Type | Fixed 80% LTV | Loan Type | Fixed 75% LTV | ||
| Loan Term (years) | 30 | Loan Term (years) | 30 | ||
| Loan-to-Value | 80% | Loan-to-Value | 75% | ||
| Interest Rate | 6.75% | Interest Rate | 6.00% | ||
| Down Payment | $22,798 | Down Payment | $28,498 | ||
| PMI | $0 | PMI | $0 | ||
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December 15th, 2008 at 8:42 am
[...] unknown wrote an interesting post today onNorth Houston Real Estate » Lease Option Investment: New Home, 15 …Here’s a quick excerptForeclosure Auction Opportunity Houston Area! » Houston Real Estate Market Report, October 2008; » North Houston 2-unit Investment Property - 100% Occupied, 8% Cap; » 6 Step Home Selling Process…A Guide to Selling Your Home. … [...]
December 15th, 2008 at 9:44 am
[...] unknown wrote an interesting post today onNorth Houston Real Estate » Lease Option Investment: New Home, 15 …Here’s a quick excerptAnother new construction investment opportunity: price discount of 15%, 2-year lease in place before closing, huge cash-flow, and a purchase option agreement with a 100% cash-on-cash return in just two years. [...]
December 15th, 2008 at 10:14 am
[...] unknown wrote an interesting post today onNorth Houston Real Estate » Lease Option Investment: New Home, 15 …Here’s a quick excerptAnother new construction investment opportunity: price discount of 15%, 2-year lease in place before closing, huge cash-flow, and a purchase option agreement with a 100% cash-on-cash return in just two years. [...]