RentToOwn-HouseFinder.com
Can anyone tell me some info on rent to own home?
i am thinking about renting a home to own and i need to know some about it
Public Comments
- When I offer rent to own to my tenants, I provide a selling price and apply a percentage (typically 20%) of the ON TIME rent towards purchasing the home. Example: Sale price is $100,000.00 and the rent is $800.00 a month; for every month that the tenant pays me on time, I apply 25% of the $800.00 (or $200.00) towards the purchase price. Tenant lives there for 2 years and decides to purchase the house, I apply the $200.00 a month for 24 months ($4,800.00) towards the cost of the house and it costs the tenant $95,200.00 to purchase. You still want to show the purchase price of $100,000.00 so that you show a $4,800.00 down payment.
- If you rent to own a house make sure that the contract you sign is recorded at the county court house if not and the current owners go bankrupt you could be fourced out by a court app. rep. also you need to state in the contract who is responsible for paying realestate taxes and how much they are. then you need to have renters insurance for your belongings, most land owners carry insurance for the building only not for the tenants property inside, so its a good idea to find all that info out before you sign any contract. You also need to do a title search on the property to see if the current seller has any loans against the place or owe any financing to banks because the banks need to be notified in case any thing goes wrong with the morgage such as you pay the owner but they dont pay the bank that becomes a big problam for you if the bank forcloses. If you find this all out it can be a very good oppurtunity for you or a real bad experience so protect yourself first. http://www.leasepurchasemadeeasy.com/
