Updated over 5 years ago on .
Rent-to-Own deal for home owner
I have a rental property in NC that I recently acquired for 120k. 3 Br 1bath. Currently listed for rent at $1250/month. Multiple enquirers but none close to asking price. Approach by a rent to own company that wants it for its client.
offer 1: rent-1000/month for 4yrs
Buy: @ end of lease for 117k
offer 2: rent - 1200/month for 2yrs
Buy: @ end of lease for 125k
it’s my first rental property and my real estate long term plan is buy and hold. I’m caught between two minds now, I will like to stick to my original goal but I feel I could do better with my subsequent rental property in terms of home specification (Br, baths etc) and location. I don’t want to let go of an asset if I don’t have to but I’m not attached to it either.
my plan is to negotiate for higher price for the value of the house at end of lease. If it’s met, good, if not, I’ll keep it. Rate of appreciation on property in the area is 8%( so have been told) but 6% seem reasonable based on bought and sold houses in last 24 months.
Thoughts