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Rent to own???

Posted by on Sep. 9, 2013 at 1:04 PM
  • 11 Replies

My landlord asked me if we'd like to buy the house and apparently has asked his other tenants too. 

There are many pros and cons for us to consider such as the central location and pervasive plumbing problems.  Financially though, is this a good idea?  He wants us to make a down payment and by my calculation we would pay it off in around eight years at the current rate.  Of course I'd love to own, but if we move before the house is paid off with this type of deal, doesn't he keep our down payment and all the monthly payments/rent since?  We build no equity, do we?  I'm excited and somewhat cynical at the same time - my uncle was burned (well, nearly. long story.) on a rent to own home that was nearly paid off.  What would change besides me making (another) big deposit and becoming responsible for repairs?


All advice would be appreciated, particularly from landlords and anybody that has had good or bad rent to own experiences.

by on Sep. 9, 2013 at 1:04 PM
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Replies (1-10):
Kriskash25
by on Sep. 9, 2013 at 1:23 PM
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From what I've read and seen it almost always is a scam! Just be careful and get a realtor or broker to look over the agreement before signing!

morriganna
by Member on Sep. 9, 2013 at 1:41 PM
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Quoting Kriskash25:

From what I've read and seen it almost always is a scam! Just be careful and get a realtor or broker to look over the agreement before signing!

That's what I'm worried about, what's his motivation?  As it is, we never call him for anything, he just collects money.  Seems like he needs to rustle up some cash since he's asking for a down payment when we've already lived here two years.

Anonymous
by Anonymous on Sep. 9, 2013 at 2:17 PM
1 mom liked this

Most likely, it is a scam. Talk to an attorney about it, as well as a realtor of your choice. Maybe the attorney can recommend one. If there are issues with the plumbing or anything else, the value of the house is less than what the landlord may be telling you. I rented from slumlords before I bought my home, so I'm pretty knowledgable about this kind of thing. Good luck.

Momofmenagerie
by on Sep. 9, 2013 at 2:19 PM
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I've heard if this working out in the " renter's" favor. EVER.
morriganna
by Member on Sep. 9, 2013 at 5:06 PM


Quoting Momofmenagerie:

I've heard if this working out in the " renter's" favor. EVER.

Good to know.  I was wondering if anybody out there had ever had a good rent to own outcome.  Mostly it seems like nothing would change exept me scrounging up a chunk of money that we don't have, to give him.

storkradio193
by Bronze Member on Sep. 9, 2013 at 5:18 PM
I would contact several realtors and get good, helpful information before considering. You will want to make sure it is legally legit with clear purchase prices and whatever legal documents are necessary. If you are putting a down payment down then why not make it regular purchase?
scarygirl101
by on Sep. 9, 2013 at 8:26 PM
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Be sure to see if there are any liens or judgments on the house.
ragdoll13
by on Sep. 9, 2013 at 8:31 PM

I know a lot of people are going to hit you with the scam fear.  And while yes, some are scams, some are not.

Be sure you go through a licensed realestate company/agent.  Be sure to read and read reread the contracts invilved.  If the contract is vague or covers too little, suggest changes and additions.  If the contract is missing all together, then yeah, I say scam.   

Usually in the rent to own situation, the down payement is small compared to outright purchasing a home.  Typically the "dopist" first and last months "rent" are what make up the down payment.  There may or not be clauses in the contract stating what repairs are whose responsibility.  

You will also need to be sure that the issue of who will be responsible for property taxes is documented.

As with any big contract purchase, i would have a lawyer sit down with you and review the contract.  This would be an excellent time to ask question, even hypothetical ones.


KyliesMom5
by Bronze Member on Sep. 10, 2013 at 11:15 AM

 If you have lived in the house for a certain amount of time it is considered a refinance when you go to buy it. I could be wrong but that is what I understood when My now ex-husband and were discussing buying the house we rented.

LadyBast
by Brenda on Sep. 10, 2013 at 4:29 PM

We did it in the house we now own but had an issue and I did have to get an attorney but it worked out this was in 93...

The house was junk too but we fixed it up and now love it so you have to decide and yep if you move before the time you can refinance and have your own loan so it is paid and you owe a bank or you let it go..

That refinance is always an option never forget that he cannot force you to his buying contract unless it states that so make sure it does not and no loop holes find an attorney that will look the contract over if you are not sure, it is normally free!

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