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Creative Real Estate Financing

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Daniel DeMarco
Pro Member
  • Accountant
  • Mars, PA
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16
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Rent to own question?

Daniel DeMarco
Pro Member
  • Accountant
  • Mars, PA
Posted Oct 3 2015, 18:32
I am thinking about purchasing a house for one of my tenants that needs a bigger place and wants to own their own property. I am thinking of buying a home, renting it to them on a rent to own basis for three years and collecting a large down payment. Then I would hold the mortgage for the next 10 years. Does this sound logical? I have 6 rentals right now and only about 50% of their value is loaned, so I would be able to just take a line out to purchase the home to offer as rent to own. This sounds simple but I am afraid I am missing something. Your help would be appreciated.

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