Owner-Financing and then Lease-Option to end buyer

Jill & I have done one the same way. The owner wanted 45K for the house, we offered 25K cash, they rejected it. So We offered 35K if they would owner finance with 5K down, 8% APR, based on 30 years, but with a 5 year balloon. They accepted.
We went in cleaned, painted inside & out; then advertised as a lease-option. Put a tenant buyer in with $ 3500 down, $ 650/ month rent, with a purchase price of 45K. The taxes & insurance cost us about $ 110 per month & the mortgage is $ 220 per month; giving us $ 320 per month positive cash flow.
Which is $ 3840 per year.
The paint cost us about $ 250, so we have $ 1750 into the house(5000 - 3500 = 1500 + 250 = 1750) & 2 weeks of work. So take the $ 1750 (investment) divided into the $ 3840 (net rent for 1 year) = 45.57% ROI !!!
Would like to find 10 more, that's a great return!

Hey if you want to know how lease options and Subject Tos work go read Wendy Paton's book on Lease option and Subject Tos. I'm reading this book now and I'm learning a lot from it. Another DG member recommend this book to us DG family.

thanks. I was actually going to do what you were doing. I just wanted to make sure that it's been done.

I do know about lease-option and sub2 since I read tons of books. Just tend to forget here and there with all the information from other places.

I had started to do a lease option & couldn't find a tenant buyer( it was in a d area) but yea tons of people do lease options. Much success!