RENT TO OWN QUESTION..IVE BEEN CURIOUS ABOUT!!

[Michael Rivera]

I'VE SEEN A FEW INVESTORS ASKING 2.5% DOWN FOR RENT TO OWN MULTIFAMILY HOMES. NOW IF I WAS TO PURCHASE THIS HOME ON A RENT RENT TO OWN BASIS CAN I RENT TO MY OWN TENANTS AND COLLECT INCOME?
COMMENTS MUCH APPRECIATED, THANK YOU!

[Brian Gibbons]

Hi Michael Rivera , welcome to BP!

You want to purchase in NY a MultiFamily? on a Rent to Own?

You could Master Lease or Sandwich with rights to sublease and sub option. You are on the hook if the tenants in your sublease do not pay and you have to pay the Owner-Seller.

As Michael Carbonare said, there are other ways to use Lease Purchase, such as Lease Option Assignments or Cooperative Assignments, where you lease from Seller then assign for a fee, and you are out of it. There is less risk there.

And there are Master Lease Options, usually for small 2 to 4 + units where you are guaranteeing a minimum payment to the Owner-Seller and you get what ever you can from your sublease agreements netting a profit.

If you are broke, Lease Option Assignments help you get chunk cash faster than most strategies.

I wrote an article for BP in 2010 on this here
http://www.biggerpockets.com/articles/2068-how-to-do-a-lease-option-assignments

Hope this helps!

Brian