A lease option, or rent-to-own, combines a rental agreement with the right (but not the obligation) to purchase the property later at a predetermined price.
Log in to followAn owner in my area has 11 single family houses, all on rent-to-own with tenant-buyers, terms between 18 and 36 months. His credits were tracked in a spiral notebook and a spreads…
Structure I inherited when I bought into this position: 36-month lease option on a single family, rent $1,750, of which $350 a month is credited toward a $265,000 strike price, pl…
Townhouse, 3 bed, in a mid-price suburban pocket. Comps say around $268k today. I owe $141k on a fixed loan I will never beat. Rent is $1,725 and the tenant has been in three year…
I've got an option on a 3/2 at a $305,000 strike, 30 months, $7,500 option fee, no rent credit. Comparable resales are landing around $328,000. Rather than exercise and resell, I'…
An operator I've met twice at a local meetup asked me for $15,000. He wants to take a lease option on a 4 bed in an inner-ring suburb, strike $295,000, 36 month option, $15,000 fe…
Negotiating an option on a $410,000 house, 36 months. Owner wants the strike set at appraised value at the time I exercise, minus 3 percent. I want a fixed $425,000, which is roug…
I move houses fast, that's the whole business, and this one hasn't moved. 3 bed 1.5 bath, all-in at $186,000, listed at $214,000, 70 days, price cut once. Two showings last week a…
Current rent roll: 10 occupied, average $850, so $8,500 gross. Nine of the ten are month to month and under market. I figure $1,050 is achievable after a $3,500 turn, and the two…
I'm looking at a rent-to-own on a small house and the owner said his policy covers the building so I "only need renter's insurance." But I'm supposed to be handling repairs under…
I've now read four lease option packages and the assignment clause is where they diverge hardest. Two say the option is freely assignable by the optionee. One says assignable with…
Small towns, houses in the $70k to $110k range, mostly owners who inherited a place and don't want to fix it up for a sale. When I bring up rent-to-own the reaction is usually pos…
Head lease signed six weeks ago on a 1970s 3 bed 2 bath in a first ring suburb. Owner is out of state, inherited it, doesn't want to sell into a slow market and doesn't want to ma…
I'm looking at my first rent-to-own on the buyer side and the two drafts I've been shown handle the option fee completely differently. In one, the $6,500 goes to the owner at sign…
Reading a lease option package for someone else this week and the option contract is clean, well drafted, separate from the lease exactly like people here keep saying it should be…
I have four small buildings and I've never done one of these, but a tenant in one of my duplex units asked whether she could buy the unit over time and I'm reading up before I ans…
Reading an option agreement a family friend's agent sent over. House near my sister, asking $289k, and the owner has offered a lease with an option because it's been sitting. The…
Still working out which strategy fits me and lease options keep coming back up, so I've been reading drafts people have posted here and the strike price is where they all differ.…
I put money into other people's deals and read their documents, so I'm coming at this from the paperwork end rather than from operating. A sponsor I look at is starting to offer r…
Closed three weeks ago on the house I'd been in on a lease option since spring of the year before last. Posting the numbers because I got a lot of help in here when I was reading…
I've got about $9,000 set aside and no shot at a conventional mortgage for another year or two, so I've been reading up on lease options instead of just refreshing listings. What…