Rent to own
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Rent to own (by John [VA]) Jul 11, 2019 6:18 PM
       Rent to own (by Ken [NY]) Jul 11, 2019 6:54 PM

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Rent to own (by John [VA]) Posted on: Jul 11, 2019 6:18 PM

I know I've asked something similar in the past but I found someone who wants to do a rent to own option with one of the rentals. I've heard a lot of good and bad things for both sides of the party. Heard it's great since you don't have to do any repairs and don't have to worry about commissions but also that they can still fall through, tare up the place, can still make you do certain repairs, and try to get back the deposit. Have any of you had good experiences with this? Below are some numbers :

His credit 530

Income base 50k

Annual avg Commissions 15k

Has been with the same job 3 years

Has good rental history

Would get a VA loan (heard those AR ea lot more strict than traditional loans)

He is also going to have his brother and brothers 3 children residing

Would do 5k down, purchase price set at 320k next year(appraised value) , pay 1400 a month which is my mortgage.

Or I could just sell now lose close to 30k in commissions and fees but have heard rent to owns rarely go through.

Rent to own (by Ken [NY]) Posted on: Jul 11, 2019 6:54 PM

I do them but would not do it with that guy with that credit,lack of down payment and sale price of the house.You can find someone who can cash you out.The situation you described will fail and you will probably get it back with damages far exceeding the down payment you received.I would only do it with that guy on a house already needing lots of work that I bought for under $10000 and selling for $30000,when it fails I would get it back no worse than I gave it to him because it was in bad shape to start with

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