I'm in TX where most people think LO's will allow the state to take your firstborn......but...the statutes regulating LO's are located in Title 2 Chapter 5 of the Texas Property Code.

That's why you should not do rent to own stuff on one contract but a L/O, a lease and a seperate option agreement.

Well DG, financing has nothing to do with the value of your property, it is what it is and you need to price it to comps in the area, an appraiser will when it's time for the buyer to close and get financing down the road.I'd suggest you sell on a note and deed of trust, if a screwy l/o deal goes south in Texas, you may need to foreclose anyway, might as well do it right.....good luck!

LO's are a great way to start off IMHO.

I should of asked, would it be considered predatory for a commercial bank LO to require a borrower to take on more debt than he/she was seeking as a requirement to secure a purchase of the borrowers principal residence?

LO's in TX are fine, although you have to abide by the specific statutes of course, such as disclosing mtg info etc.

(standard agent talk, but i needed to do some more investigating on the leases and an interesting configuration issue in one of the units, so I didnt make the offer) Lo and behold a few months go by, and the property goes under contract for about 3% less than the asking price.

Although I've heard of this....I've also heard of people winning the lottery...I'm in TX, where it's supposed to be illegal to do lease options...yet..Ive never had an issue..However, in TX, if the tenant default on a LO, we send a notice of default which gives them 30 days to cure, then we evict.

You would need lo live there at least a year to satisfy FHA requirements.

Can I do a L/O for longer than six months?