1. Low down payment
, if any 2. Rent money is working for you (rent credit) 3. Option consideration is credited 4.
Purchase price is usually locked in 5. Appreciation 6. Time to check
out the house 7. Time to check out the neighborhood 8. Time to clean up
your credit and/or obtain the best financing 9. No taxes to pay How it
works: In order to fully understand how Rent to Own
works, you need to first become familiar with the deal itself from the
seller’s, or “landlord’s” point of view. There are many reasons why an
owner would sell their home this way, but several of the most common
would be: 1) He/She would like to remain on the deed for the next few
years to continue to enjoy tax benefits 2) He/She may be a tired
landlord who is at the end of his rope after a string of bad tenants,
and would like to acquire tenants who will take care of the property,
knowing that they will be the owner someday in the future. 3) He/She
would like the freedom of usual management headaches plaguing many
property owners As we go on further, you will easily see how the above
worries all but disappear when the owner/seller sells their property using the Rent to Own
system. Let’s now put down some numbers that would be typical of a Rent
to Own deal in the eyes of the seller/landlord. Let’s say Mr. Seller
owns a home that is valued at $250,000, based on several “comps,” or
appraisals. He owes $200,000 on the home and his mortgage payments
are $2,000 per month. He lives in another home on the other side of
town and is tired of being the typical landlord, constantly worrying
about the tenants, receiving rent too late, or not at all, and is just
plain “over” the whole experience.
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