Rent to Own Strategy

[Matt Leber]

Recently, a home in an established neighborhood near me was listed as a rent to own with monthly rent payments of $1,000. However, market rents in the area are closer to $1,600/mo. With rent to own, would I be able to purchase the property for $1,000/mo and then turn around and rent it out to someone else at market rent? Or is there usually something in the typical rent to own contract that would prohibit this?

If this strategy is viable, is there usually a big up front payment or other pitfalls involved with rent to own properties?

Thanks!

Matt