RentToOwn-HouseFinder.com

Has anyone ever been in a rent to own situation? more details?

I want to rent to own a 3 bedroom house. I would have 2 reliable roomates living with me. What has your experience been with a rent to own contract. Do they figure in taxes in your rent and insurance? DO you know any good sites with info?

Public Comments

1. I know you are probably tight on cash, but I advise you to have a consultation with a Real Estate Attorney. Have him look at your paper work to make sure it is in your best interest, Most consultations are free. The problem with alot of these deals is HOW MUCH OF THE RENT goes towards the purchase each month? How long will it take you to pay it off? What if one of the other renters back out, move out etc? What is involved if you want out, what do you loose? Do you get any Cash back if you live there 10 years then get married and want to get out? Taxes, Insurance? Are you household items covered by insurance or just the house? Who gets to claim the interest on their taxes? You would be better off to buy it on your own and you would be surprised what a Credit Union is willing to do for you, if you have a regular job, chances are good they will loan you the money for house. The house is collateral on itself and it is better than a 401K plan for your future. Why throw your hard earned $$ away. Just Try...The worst is they will say no at best you will be pre-approved up to a certain $$ amount and can get a realtor to help you find what you want that you can afford and bank it later...! Get a fixer and do it yourself and you'll have pride of ownership!
2. Rent to own is a lose/lose proposition. Too many things can go wrong betwen the day of signing and the final day of purchase. Consider an option to buy instead. This mean an x amount of cash is committed to a future day when you will have first right to buy the property. If you change your mind, you will probaly lose the cash, but on the other hand, it ties up the property for you. Further, by doing it this way, you remanin a tenant with full rights to have the landlord fix problems. However, even with an option to lease you must take the proposed agreement to a lawyer. There are way too many variable that can occurr, and trsut me they will occurr. Unkown future problems always seem to happen.
3. Rent to own, lease option to buy...they're the same thing! It's a good way to purchase, really! A purchase price is usually agreed upon from when you sign a lease. Which means the purchase price is based on todays market value, not the future! You need this: http://kaktus.com/real-estate-forms/forms/lease-option.html And in terms of what's included in the rent really is irrelevant to you! Whether you decide that you'll purchase it later, or NOT, you'd still have to pay the same amount of rent while you're there as a renter!