I recently saw an ad on craigslist for a 6 acre farm for lease. I have never done this type renting before. This is an option to buy property. I have spoken with the owner a couple times to set up the date/time to go out and look at the place with my husband.
She mentioned I would have "first refusal" when I asked her about if this was an option to buy. She didn't mention any other details but said if we wanted it we would sit down and go over paperwork with her.
I have done some research and decided that I should probably make sure there is some portion of the rent going to the down payment and also I wanted to negotiate the price. The land/resources are great, however just by the pictures I can tell this place is going to need some updating at house and barn. She stated I will be able to use the place for boarding if I like. There is a large barn and a smaller personal one. The price is about $300 too steep for us especially if we have no boarders for the first month. The area is perfect and we can definitely profit from being there and offering full care boarding at a good price.
What else should I be aware of if I enter into this deal?
Also do you think she should be able to come down on price?
I don't want to overdo on budget and then we get stuck with a place that we need to repair down the road and have spent way too much money.
Any repairs while we are leasing the place will be taken care of by the owners, she did state that to me and tell me that she will recarpet the place next year at her expense.
Could this be a bad idea or good?
I know in a couple years we could qualify for an FHA loan and possibly get an acre or two with a house and build our own stuff. So I'm wondering which direction we should go.
I am thinking if she can't budge on price I am saying no. She can't expect us to be buying this place and pay that much a month when I know there will be repairs down the road. Right?