I own a house that I'd like to lease with an option to buy. My spreadsheet looks good to me but I wanted to check with you all. I'd like to know if any of you use specific formulas for lease options?
For instance, what's a normal percentage of the monthly payment that goes towards the principal? Say they pay $1000/month. Would $100 of that towards the principal be reasonable? What if they paid $2000/month, could I credit the entire extra $1,000 toward principal reduction?
Also, I understand that for anything under $300,000 the consideration is typically $3000 or less. Is that reasonable?
The purchase price at the end of the lease...what's the best way to calculate this? How do you determine today's price to get the L/O started? An appraisal, comps or current FSBO prices, what would be best?