Landlord to rent to own

[Robert Biggerstaff]

Thank you for your time. It seems to me when I’m crunching the numbers that %10 to capital expenditures, 10% to a property manager,10% to routine maintenance, and then %10 to vacancy could all be eliminated with doing a rent to own to a resident. Even though it might be less monthly coming in it sure looks like at the end of the year if they’ll be more in the account then if I just have a rental.....I would love to hear your thoughts and opinions thank you

[Hai Loc]

You bring up a great point..

I think it depends on your approach and strategy. 

If you just buying a C class and making cosmetic improvements which has volatility of continuous maintenance, capex expenses and potential tenant turnover.. then those percentages will be maxed out every month

But if you take a different approach of gutting a place and replace old and making new you will attract a better tenant and less maintenance capex issues.. 

Or even buying newer homes 10-15 years old and accepting a lower return for less headaches.. 

rent to own is always a great option especially if you built in equity from the get go