Rent to Own? - Posted by Zope

import · November 18, 2003, 12:40pm

Posted by B on November 19, 2003 at 21:48:14:

You can rent to own you just have to make sure you legally set up an agreement on selling at a given price. The Letter of in Intent would be helpful.

import · November 18, 2003, 12:40pm

Posted by Zope on November 18, 2003 at 13:40:23:

I’m new to Real Estate, and would like some advice. My partner and I were looking at a house locally to rehab and flip. However, after looking at the numbers, we’re sure we can’t get it low enough to flip it for sufficient profit to make the deal worthwhile (we doubt we can get it for less than 80k–FM turned down an auction bid of 76k recently). After looking at comps, I think the property rehabbed could go for 110k, but after rehab and other expenses, that doesn’t leave us with much profit. I worked out some numbers for a Rent-to-Own that looked promising, but I don’t know a lot about it.

Any advice from other investors that have done rent-to-owns? Common mistakes for young investors, etc.? Or, would anyone be willing to look at my numbers for a Rent to Own to see if I’m missing anything or making newbie mistakes?

Thanks!
Zope (aka Pat)

import · November 18, 2003, 1:46pm

Re: Rent to Own? - Posted by Ayanna Lee

Posted by Ayanna Lee on November 18, 2003 at 14:46:05:

I would recommend you real all the articles pertaining to lease options from this site. That will help you make a good sound decision.

import · November 19, 2003, 7:18am

Re: Rent to Own? - Posted by jeffC

Posted by jeffC on November 19, 2003 at 08:18:38:

Be careful… If you rent to own at a set price, then rehab the property spending your money. What if the owner refuses to sell. There have been court cases for and against lease options. I would make sure all rehab billing was set up in case the owner does pull out of the deal you can charge for all repairs.