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Rent to Own Home with our taxes?!? HELP!

Posted by on Feb. 9, 2011 at 10:09 PM
  • 9 Replies
My husband and i will be getting our tax money back soon. We live with my in laws right now. When we get our refund we want to get a home of our own. There is a house in the neighborhood that is up for sale online for $139,995 and they want $3,300 down as like the deposit and first month for a 2 year lease where by the end of the second year we should be closing on the house. Has anyone else done this? the rent will be $1,100/month for the two years [and that is average for this great neighborhood and the nice large yard]. That would be exactly 33% of our income. He and i both have some debts we need to clean up and DH has to file taxes this year and next year b4 we can get a loan so we think this is a good option but we dont know. so confused! oh! last thing is we looked at the public record site and the house is only apraised at $102,200 instead of the $139,995 theyre trying to sell for. should we use that as a negotiation point to lower the rent or something? im not paying for something thats not worth it.
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by on Feb. 9, 2011 at 10:09 PM
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Replies (1-9):
by on Feb. 9, 2011 at 10:11 PM

 I have no idea so here's a BUMP!

by on Feb. 9, 2011 at 10:27 PM

Well yes if that's what it's appraised for just bring it up, and see them scramble to throw something at you, like some type of compensation or something :) GL and congrats if it goes through! 

by on Feb. 9, 2011 at 10:45 PM
Can you contact a relator and ask them about it? I know its not like a lawyer where they do free consultations, but maybe you might be able to find someone willing to give you some advice.

I really have no clue what so ever. We have always rented.

I hope it works out though. It sounds like it would be a good idea.
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by on Feb. 9, 2011 at 10:50 PM

There is not much negotiating with rent to own. Also, there is usually a large balloon payment after the 2 years.

by on Feb. 11, 2011 at 3:03 PM
We just found out that out of our downpayment of 3300, 3000 would go toward our closing costs and 300 would go toward our first months rent. were only getting 6500 for our return so that would take almost all of our money. we also need to purchass another car with our return. grrrr! its so expensive to have a nice house in a nicer neighborhood. i wish i was willing to live in the "hood" lol i also wish we didnt have to move again after we move this time. it would be nice to just stay put. my family moved around a good amount. i want my kids to have the same friends and be able to live in the same place and not have to move every 5 years. if we move to a neighborhood close to here that is decent, we would be moving outside of the school district were in now and killi [my dd] is in kindergarden this year. it would be nice to pay around 800/month but i dont wanna leave this neighborhood. baww!!! i feel so confused! friggin hormones! lol any advice anyone?
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by Silver Member on Feb. 11, 2011 at 3:14 PM

I don't know much about rent to own. We are in the process of trying to find a home to buy as well. I am self employed and don't make much after deductions. My husband has been at his job for 6 years, he doesn't make the best of money, but it has been paying our bills. We currently pay $1,110/rent on our apartment. We have one credit card, one car loan, and one student loan.. and we are having problems getting approved. I totally understand how frustrating it is!! I really really want a yard for my children this summer!!

by on Feb. 11, 2011 at 3:16 PM

I would just ask them up front why they are asking more for the home than it was appraised at

by on Feb. 11, 2011 at 3:19 PM
I guess I would ask a lot of details.
Sounds like something do-able tho.
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by on Feb. 11, 2011 at 3:20 PM

I am doing that right now - we have to wait for the foreclosure to clear our credit so we can buy. We are in the same exact type of deal. We bought our house for 75,000 though and it was appraised at 85,000 and used to be worth 120,000 before the market fell. I would try negotiating some and searching for other house and see if they are selling for above the appraised value. Also make sure you do it the legal way with a notary and every thing.

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