Rent-to-own VS Deed of trust?

Question

I have owned a mobile home for the last year.  It has provided awesome cash flow.  The park is changing the rules and I can no longer sublease.  So  I need to sell the home.

I've found several interested parties who all need financing.  I am willing to provide the financing.  What are your opinions on doing a rent-to-own route versus selling the home using a deed of trust?

We are leaning toward the deed of trust route right now.  We are selling the home for $35K.  Your thoughts on how much  the down payment needs to be?  Is requiring 7% interest way too low? Should I be expecting a higher interest rate?

Two of the parties are fine taking seven years to fully pay off the home.

Your thoughts and advice on this type of deal is appreciated!

Account Closed · Answer

I think you mean "can no longer "lease"" not "sublease". Sublease implies you yourself are leasing from someone and then in turn you are now subleasing to someone else but you don't own.

Normally you would do an installment sale like selling a car and take payments if you don't own the ground. If you own the ground, and have elimination of title, I'd probably do a DOT just to be done with it. Rent to own implies more of a Lease Option type scenario where you retain title until they exercise the Option. That is the easiest agreement to evict if they fail to pay. On a DOT you'd have to do a Foreclosure and that can costs thousands more, and can take a long time.

Frankly, I'd check my agreement with the park and see if they can even change that rule.