Yes my current home is paid off, but that fact should not factor into the
decision because I am not determining the price of the property base on what
I can afford. I have no trouble coming up with a FMV for the property based
on an apple to apple comparison. What I was trying to figure out is what
effect the rental lease have on my offer. I know what I would offer if the
house is ready to move in, and I know it's less attractive because it has a
lease, the question is how much.

I am saying zero benefit because I computed the mortgage to be just above
$2200 a month. On top of that will be property tax, water and sewer,
windstorm insurance (which will rise like at least 50% due to Wilma), flood
insurance, pest and lawn maintainance etc...so I will be paying money for
the tenant to live there for like 8 months. That is what I mean by zero
benefit.

Sure, the mortgage can't be compared to the rent, because mortgage goes to
the equity of the house, but for the first few years, most of that is
interest, so I am paying interest for close to nothing.

It does not affect me as much as someone who might be paying for their
current home, but the bottom line is there is significant cost involved
during the coming 8 months to house this tenant.

Yes I will need a place to live during the renovation. I will live in my
current home. Again that does not impact the evaluation one bit. Should I
move in after closing in April I need three months to do the renovation, I
will stay at my current home for three more months. Now I cannot move in
until December 2007, so I will have to stay in my current home three months
after that. Either way, I need to stay at my current home three months
beyond the time it is ready for me to take occupency.

Therefore, whether I have a mortgage or not, or whether I need to make
renovations or not, has zero impact on how it may or may not affect the
price of the property.

MC

"David Martel" wrote in message
ink.net...
This is rather confusing. You speak of having to pay 2 mortgages but
claim to have your home paid off. You plan major renovations so you will
need a place to live and to store your stuff while these are occurring.
You
argue that you will get zero benefit from the tenants yet you claim that
they pay $1800/mo. in rent. These things do not make sense.
You need to get a copy of the lease and read it thoroughly. You need to
include in the sale contract the payment from the seller to you of the
security deposit and any interest. You need to get a quick course in
landlord law somewhere. Since you'll be paying insurance and taxes on 2
homes you may wish to factor this into your offer but since you want the
house do not low ball.

Dave M.