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 followStructure 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…
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'…
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'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…
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…
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…
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…
I'm reading a sample rent-to-own agreement someone posted and three different words seem to be doing the same job. There's a $5,000 "option fee" up front, then $200 a month descri…
Looking at a listing that's advertised as rent-to-own. House is priced at $240,000 with a three-year option, rent is $1,650, and $300 of each month's rent is credited toward the p…
Building a service business helping owners set these up and I want to know where the structure breaks before I put my name on it. The version I keep seeing pitched: 60-month term,…
I own a small triplex and the woman who owns the fourplex two doors down is tired of managing it. She floated leasing the whole building to me for a flat $4,400 a month for three…