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Please help. I want to rent my house in a Rent to Own contract. How much should I rent it?

Please help. I want to rent my house in a Rent to Own contract. How much should I rent it? I am the owner of the house now. I want to rent it to someone interested in a rent to own deal. the contract is one year rental then buying the house. I want some help at what price should I rent it this year? if I sell it now , I would sell it at $307.000. my morgage monthly is 1850( property taxes included). my equity on the house is $35.000. please help How much should I rent it now and how much should the person which will be renting it now will give upfront? in my area, house take 7% value per year. please help

Public Comments

1. Go to creonline.com, where there's a free forum and you can get great advice.
2. go to a realitor and ask for there advice
3. that's a huge nut. what did you do, buy it with $20.00 down?
4. You should consider hiring a professional to help and advise you. Real Estate matters can be complex and it will be well spent money to keep you out of legal trouble. Realtors have the knowledge of the market, the expertise to draft the contract and contacts to make the deal a smooth transaction. Most For Sale By Owners leave a great deal of money on the table because they get desperate to sell/rent, and most buyers think they can get a DEAL when it's a by owner.
5. The rent you charge should be based on fair market value of similar rentals in the area. What you owe on a mortgage, or the amount of your equity, are both irrelevant - if it was paid off, would that mean you charge no rent? Of course not! The question to ask is, how much credit of rental money should you allow toward the purchase price? Also consider this: you say the market value of the house is now $307K. But what will it be in a year? About $328,500, if it goes up 7%, which is what I believe you meant. Who should benefit from that price appreciation - you as the owner, or the prospective buyer? If it's a fair rental rate in your area, you might consider something like this. Charge rent of $2,500 per month, with a credit of $5,000 toward the purchase in 12 months, at a sales price of $325,000. If the buyer goes through with it, your net rent will be $25,000 (after deducting the $5,000 allowance) while your costs will be $22,200 (assuming no maintenance expenses.) And the purchase price is fixed, and you won't have a realtor's commission to pay. If the buyer does not go through with the purchase, you have the rental income (net) of $7,800, and a house you can then sell, at an even higher price. Good luck.