Updated about 7 years ago on . Most recent reply
Rent to own broker offering to buy for cash - Legit or no?
I have owned a SFH propert for approximately 9 years, primary residence for the first 5 and rented for the last 4. I am way out of state and the property manager I have is horrible. I have looked and looked in the area to no avail in finding a better property manager. Seems the trend is that all in that area are subpar in varying degrees. NO positive recommendations so far.
I was approached by a company offering to put the house under contract for a long term lease (up to 2 years) in which they find someone interested in rent to own. They require their tenant to pass credit score check and steady income and pay 6 months rent up front and help them work on the getting the loan/financing to finally close on the house.
In return for their services they typically require 25% of the profit from the sale of the home. That seems like a reasonably high number but like I said this property is a nightmare to manage from across the country. It is older (1985) and consistently rents with negative cashflow (~$150) per month.
I am wondering if anyone has any dealings with this kind of business. Looking for words of caution/wisdom and things to watch out for. Right now the property manager is so bad that it looks extremely promising to be done with the property but its not like its a "must sell" kind of situation.
Open to thoughts, comments, or advice. Thanks in advance!