house/farm for lease
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 definately 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?
If you can't afford the rent/mortgage without taking on boarders, don't do it. You can't count on other people to make your payment.
Better to wait and get a place you can afford when the time is right.
I understand that. I guess what I'm asking is I feel like this place should not be more than $1400/month. The total price for sale is already over priced. I don't want to insult her but whats the best way to negotiate on the monthly cost? Some of the stalls in the barn in the pictures are falling apart. I don't feel like this place is worth $1800/month.
If she comes down we won't need boarders in order to afford it. I guess all she can say is no. But I feel I have good reason to ask for a reduction.
If she says the price is non-negotiable, then there really isn't a way for you to get around that. If she's willing to come down on price, then you might consider it.
My question to you, is she using a realtor? Rent to own is a common thing, and I simply wouldn't trust a private owner to put back a portion of the lease money every month for your down payment. Better for you to start putting it away yourselves if you're doing this without a realtor involved.
She may be under water on her own mortgage, which means she CAN'T come down on the rental price if she's trying to get out from under the place.
I'm not sure why you think the place is overpriced, though. Land itself is worth a lot, especially if it's in a desirable area.
I agree land is valuable to me. But around here all people care about is boat slips or water views. Acres of land are cheap, ppl don't want horse farms/land. Therefore we might very well do better to wait and get 6 acres for a cheaper price. Thanks I will ask her and that is a good way to find out if maybe her finances are in trouble. I wouldn't want the worst to happen.
Ah, gotcha. It's land, but not land around water which seems to be the preferred type. :wink:
Honestly, if you think you want to do this, involve yourself with a realtor. They only get paid if you actually go to closing, so it's not like you're going to have any out of pocket expenses right off the bat.
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