An agent from an area I'm looking at reached out to me saying theres someone looking to rent to own a property and she asked if I'm open to it. The person is apparently looking to spend about 50-60k total but can only afford about 3k down. The person is willing to put that down then pay it all off in about 5 years. The agent said I'd probably be able to make around 10k or so. In other words, I'll buy the house for 40-50k and that person will pay the 50-60k within those 5 years.
Now the problem is I don't have a property there but am looking. The agent knows this. Anyone have any experience in this? Is this worth it? Can it be a scam of sorts? Any advice or suggestions? Or should I just totally avoid it?
It likely won’t work out well.....they rarely can actually buy later, they stop paying rent, you have to evict, repair, and you keep it as a normal rental.
@Wayne Brooks Thanks for the response! So that person is willing to put in 3k down and I assume pay a larger amount monthly than renting it regularly. So even if after a year or two he/she doesn't want to buy it, technically wouldn't it be a win for me? I'm under the impression these kinds of deals means I get to keep the money regardless of what happens at the end?
Edit: The purpose of this post is to find out if anyone has done it or know any downsides to doing this if my assumptions above are correct. Or are my assumptions wrong?