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This property was purchased by me using a ten percent down payment and a seller carryback for the balance. I paid $95,000 and my monthly payments were $725 PITI.
I lease purchased this same property three times in four years. The first tenant/buyers put down $2500 option consideration, and agreed to a twelve month agreement at $825 per month with only a $100 per month rent credit. The price was set at $107,000.
Divorce reared its (not so) ugly head and they vacated at the end of the lease.
The second tenant/buyers came along and also put down $2500 option consideration, agreed to $840 per month for twelve months. This time I offered a 50% rent credit, and the purchase price was set at $109,000.
Guess what? Another mid life crisis, another divorce. They peacefully vacated and I began the process anew.
Tenant/Buyer number three entered the picture. They, too, gave me $2500 non refundable option consideration, and agreed to the same terms as tenant/buyer number two. After twelve months they asked for an extension which I readily gave them, (some of the nicest folks I have ever known, by the way, who I still remain in contact with today). Finally, they decided they wanted a larger house and purchased one just a few blocks away.
I sold this house in a traditional manner after that, and earned a nice profit in the process.
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