I'm looking for an apartment, townhouse or house to rent...one of the properties I've been looking at has a rent to own option. It's a house 3 bedroom 1.5 bath $2000 down and $900 monthly for rent.
Is there anything I should be wary of? Is this something that could potentially backfire? pros? cons?
"Holier than thou never sits well with me."(c)janey
"OKP spends way too much time looking for ways to be offended." ~legsdiamond
3. "Anytime you take a "rent-to-own" option, you lose..." In response to Reply # 0
Because you're essentially paying the down payment two or three times on the property.
You can assume that, if the rent is $900 a month on a place then the mortgage is somewhere between $600-$700. Now, if you do the math on that, you can figure out how much the place is worth and that, if you take that $2000 you'd pay up front, and then three or four months rent, you'd have enough of a down payment to buy another place at the same price without the scam.
4. "If you have a good contract and are looking to own a home - " In response to Reply # 0
it's a good way to go for first time homeowners that do not have the capital to put down on a new home, but still want to live in a house instead of a standard apartment.
. . "America, stop turning our Court Houses of Justice into Dens for Justified Murderers."
7. "i would do this on a property i wanted to get rid of..." In response to Reply # 0
because it had issues, but couldn't' sell to a regular buyer because regular buyers are super thorough and will pay hundreds for a housing inspection and appraisal revealing all the problems. in other words, don't do it before you do those things and maybe live in the property for a minute so you can decide if you like the area/there are no major issues with the property. you have to think of what is the upside for the seller?
legsdiamond Member since May 05th 2011 79585 posts
Fri Jan-02-15 02:15 PM
8. "never heard of a successful rent to own transaction" In response to Reply # 0
They usually end with an eviction because the owner stopped paying the mortgage.
Is this a reputable company? More times than not that extra hundred towards credit is pocketed. What can they do with $100 of your dollars that you can't do?
9. "Nah, B. Buy straight up, but don't go for this okey doke....." In response to Reply # 0
You're always in a better position maneuvering your own money. FOH with giving someone else your money to save and credit and put toward a down payment. I'd bet dollars to donuts, there's some hidden fees and whatnot.
Either rent at reasonable rate so you can save up and buy straight up, or just say fuggit and buy now.
Printer-friendly copy 
Email this topic to a friend
General Discussion
