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Updated over 7 years ago, 08/02/2017
First Rent to Own- Need help
Hi BP,
I have a current inquiry of someone wanting to rent to own 2 different pieces of property that I own. I do not have any current experience with rent to own so any advice is appreciated.
The numbers:
Property #1: Parcel of Land (.25acres) Neighbor wants to purchase this.
I offered it to him for $3,000, he has agreed to the price but needs to do a payment plan over 2-3 years. How do I go about setting that up? $100/month in rent. $50 is put towards his purchase price? Also how do you handle the initial deposit? Once he has enough cash to purchase does he purchase through the bank?
Property #2: Single Family Home.
Purchased for $35,500
Renovation costs: $12,000
Sales Price : $72,000
Two different individuals have reached out about rent to own on this property. My initial plan was the following. Refinance, pull all of my money out, get a loan for $50,000. Appraised value will be $75,000+. Rent $700/month. $650 rent, $50 saved for home purchase. 3 year term. Again what do you charge for initial deposit? Do you still collect security deposit?
Thanks BP!
- Cassidy Burns
- [email protected]
- 540-960-1507