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- No Repairs:
$5/SF 2 - Sandwich Lease Option
OPTION
OPTION 1 - Cash Offer - Cosmetic
(Perfect Tenant Program)
Repairs: $10/SF
After Repair Value / Zillow $70,000 Market RentRehab
- Full-Gut $800
Discount (% of ARV) 70% - $20/SF
Min Monthly Gross Cash Flow (25%) $200
- (For rentals -
Square Footage 980 Min % Equity 15%
varies by
Repairs (price per square foot) * $10 Min Gross Equity
market) $10,500
Total Estimated Repairs $9,800 Number of Years 5
Wholesale Fee $10,000 A-B Option Consideration $500
A-B Purchase Price / Offer $29,200 Repairs $9,800
OPTION 2 - Sandwich Lease Option
OPTION 1 - Cash Offer (Perfect Tenant Program)
Purchase Price (all cash) $29,200 Option Price $49,700
Lease Option Rent To Seller $600
Option Deposit $500
Number of Years 5
*** NOTE 1: These calculations are only approximations, designed to give the seller various options on how you might be able
OPTION 3 - Lease Option Assignment
Price Seller Wants $70,000
Market Rent $800
Min Term (years) 2
Option Consideration to Seller $10
s on how you might be able to buy their house. You must do your own due diligence and check comparables.
eppraisal $76,917
realquest $89,000
zillow $101,000
Average $88,972
ARV $225,000
% 15%
Option A-B $191,250
Market Rent $2,200
% 25%
Cash Flow $550
Rent A-B $1,650
A-B Term 10 years
B-C 24 months
Option Price $238,500 $250,000
Rent $2,200
Term 2 Years
Sandwich Lease Option Profitability
Option 1
INCOME
Term (months) 36
Current Value $125,000
Lease Option Premium 5% $6,250
Expected Appreciation 3% $11,250
Expected Sale Price
* Note: you may have to pay Realtor commissions out of your pocket early, but it is really the seller paying them. T
This will not affect your bottom line profit.
Option 2 * Sometimes, you need to give the seller more options
36
$125,000
5% $6,250
3% $11,250
$142,500 $142,500
$ 275 $9,900
$ - $0
$ 200 $7,200
$9,900 $17,100
$115,000
$ 100 $3,600
3.0% $3,450
-$126,250 -$122,050
$26,150 $37,550
21% 30%
0% 8%
, but it is really the seller paying them. They will be part of your Option Consideration, and will be credited back to you at closi
ve the seller more options