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I want to lease to own a home.?

I want to move out of my apartment and get a home that is lease-to-own. If I do this, will I be able to rent out the two other bedrooms? If I do rent the other bedrooms, are the other people partial owners or are they just renters? And do I set up a rental agreement between myself and the renters or does the owner of the property set up the rental agreement between himself and the renters? Thanks.

Public Comments

1. The answers to these questions all depend on how the lease-to-own agreement between you and the current owner is written up. Typically, it will be written as two separate parts: one that has a standard tenant contract: you are the tenant, you are paying x amount per month, etc. This is what will specify if you can sub-lease the space. If you _do_ sub-lease (and if that is permitted by the agreement) then it's entirely between you and _your_ tenant. The second agreement you'll have with the owner will be the terms of sale: how much of the "rent" goes towards ownership, how long you have in case of default before the property reverts to the owner, etc. Do your research. Talk to people who've been buyers in a lease-option scenario. It can work very well, but there are some risks - if you are late on a single payment, the home is no longer yours, you can be evicted or just converted to a simple tenancy. Talk to a lawyer experienced with lease-options before you do this, especially as you want to have a tenant yourself! Cheers, FF
2. i have talked many sellers into no money down rent to own deals then found someone with 5-10k down to reassign my contract to. I do about one a month, sometimes two.