Rent To Own ?
Hello, I bought a house for 65K put about 10 K into it and can sell for about 130K. I have been thinking about Renting to own. Can someone give me some advice on what they think I should do based on experience. How does Rent to own work, do they put a down payment down? I"m a little fuzzy on the details and would like some clarification. Thank you very much in advance
Why do you want to rent-to-own rather than just sell conventionally?
Rent-to-own is essentially a lease with an option to buy-- there is a whole forum here dedicated to the process. Read a few of those posts and post your specific questions there.
That's quite a profit - why not sell the property conventionally and put the profit towards another 3 or 4 properties with the same profit potenital.
You did it once, why not do the same thing again?!? Looks like it worked like a charm!
Good Luck!
[addsig]
If you can sell conventionally then do so or make the place a rental. A lease/option is what you are asking about. It is normally used for deals where you want to sell for full price and do not mind waiting a while for your profits.
If you can pull out most of the value quickly then you will be better off reinvesting in another similar deal then you will letting the equity sit for a year or two.
If you really want to hold for a year or more, then consider refinancing first so you have access to some of the equity for the next deal.
John
[addsig]
What is your goal? to own rentals? make a quick profit? I think you need a plan and then shoot for that goal!
murta09--(VT)-------------------
Forget rent to own or lease options. This property has plenty of equity. Either, as others mentioned, sell outright or refinance and rent it out, depending upon your desires.
The leaseoption approach is, in my estimation, for properties with no equity and no way to make a profit selling conventionally. It is generally a very poor way to get rid of a property. Avoid it.
Good Investing*************Ron Starr************
thank your responces. I'm also now thinking about living in it for a few years. I am only 23 years old and could easily take advantage of this. Is it true I could sell the property after 2 years and not get taxed on it at all ? No capital gains or income tax?
Hi,
Congratulations on being in such a great position. How did you find such a sweet deal?
I am also looking at buying a property and fixing it up to increase it's value. Would you mind sharing what you were able to do for 10K that resulted in the best increase in the property value?
Thanks and best of luck,
JS.
Well, what i've learned so far in REI is that you make money when you buy. The lady that owned this house is in bad health and lives in a nursing home. I grew up with her son and went to see her in the nursing home and heard of her situation. That house hasn't been maintained and has holes in the walls. She didn't have the money or time to fix all of the things that needed to be fixed. My Dad is a contractor so he comes in and fixes what needed to be fixed. The area is great and the house is now worth around $130k. Its a great first deal.