Anyone do a rent/lease to own?

[John Morgan]

My tenant wants to buy my house through a lease to own or seller financing deal. Anyone have any suggestions. It would most likely in my opinion be a owner financed deal. But I don’t know where to start researching if this is a good idea and how to go about it.

[Jerel Ehlert]

If it's a low price point, you own it free and clear, and buyer can pay it off in <5 yrs, you might consider CFD. MIGHT.

For anything else, use the full owner finance scenario: deed, promissory note, deed of trust...

• Close at a title company
• Use an RMLO and loan servicer
• No balloon earlier than 60 months (not recommended at all)
• Sales price = licensed appraisal (MAX).  Selling property for much higher than what a licensed appraisal would come in at moves the transaction into fraud territory.
• Note/lien = sales price - cash down
• APR: fair reflection of risk
• If APR is high => "high cost loan" under CFPB => appraisal and inspection become MANDATORY

Anything less than this...that's your butt on the line.