Topic: Rent to Own Home
Rent to own
I think this would be much the same as holding the mortgage yourself, the "rent" would be applied to the purchase value, and the advantage is you make the interest rather than the bank so a much higher return then a straight purchase/sale. The downside is if they bail you have the house back and if you’re still carrying a mortgage on it the responsibility for it. You would need a lawyer designed purchase/sale agreement to make sure all the i's are dotted and t's crossed. There is without question a good deal of risk involved on your part and you would need to be able to carry on if "worst case scenarios" happened. You could make it very simple for you and very advantages to the purchaser by just reducing your purchase price by the amount of the rent every month (ie 100 thousand house 800.00 rent next month the price is 99,200.00 next month its 98,400.00 etc) but this offers you no protection and no "profit" (interest) nor does it account for the value of the property going up over time, and could get very complicated who pays the taxes, water/sewage etc would the tax bill still be in your name or the purchasers, if in the end they decided they didn't want it would they get some or all of there purchase back (rent) or could the "sell" there purchased portion to someone else and leave you with someone in your house you never intended.....etc
Bill
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