Has anyone in the Milwaukee area did a rent to own contract? I will most likely be relocating and I am not sure if selling my house outright or rent to own would be the best way for me to go. Looking for some insight to see how other people's experiences with rent to own in this market.
My proposed figures would probably look something like this:
$126,000 Sale Price w/3 yr rent to own
$1260 monthly rent with $300 allocated in escrow and going towards buyers down payment
$1260 Security Deposit/Option fee
Buyer responsible for all maintainence and repairs on the property.
Keep in mind that "rent to own" and "land contract" (contract for deed) are two different things. Many landlords love "rent to own" because some 90-95% of people on a rent to own never wind up owning.
So the landlord collects the down payment and extra rent and then the tenant leaves and never owns the property. Then when they leave you need to fix up the property to "rent to own" again.
If you want to sell at $126,000 did you check to see if you can get that much for your house? If so, then it makes more sense to sell outright. Otherwise, check to see how much you CAN sell the property for and determine if you WANT to sell for that much. Or, you may just rent out the place while you are away.
if you did do a rent to own and the previous tenants did not get the deed with it how does that work out? Do they not pay rent to you anymore and live there? And if they trie to sell they couldnt?
Okay thank you
@Dawn A. - I think that the selling price would be a reasonable one for both myself and the buyer given the three year 'rent' period. I dont think I am giving up that much risk, but I am also not sure that I could get that much for it this summer. I would think more in the $115-$120,000 range.
The biggest concern I have is if I sell the property, I want to get everything done and try to sell it for top dollar. The chances of that are slim to none as I will probably be looking to rent or sell within the next 90 days. So the question is do I sell it for less or try to rent it out until I can get the work done that I would like to. Both my wife and I would prefer to get rid of it, but I just am unsure of what price we will attract, especially with a lot of similar properties in Bay View currently on the market.
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