New to Rent-to-Own:
I'm trying to sell a SFH worth 35k. It's a 1600 sf house with 4 bedroom and 1.5 bath.
I've had three buyers fall through and I'm running out of cash on that property to throw around.
A guy has been calling me for 6 weeks about renting to own.
He's offering to give me 2k downpayment and 900/month rent. The rent for the house is normally 650/month with the tenant paying all utilities.
He is a contractor who has been in business for a few years and makes over 60k a year, on average. Problem is that he has no credit becuase he never uses debt, so he says.
I am going to run his credit and criminal background but here's my general question:
If I do rent-to-own with 2k down, I could apply the difference between 900 and 650 toward his mortgage. This would be 250/month for a whole year, which would be 3k. So theoretically, I make out really well on this deal.
Second question, can somebody build enough credit in 12 months to buy a property? And do buyers usually bail out on rent-to-own?
Also-who pays for repairs, normally, under rent-to-own conditions?
Any info is greatly appreciated!