Investor · Mesa, AZ · Member since 2016 · 40 posts · 6 votes
Hi,
I'd like to understand why a buy and hold person would offer their rental as a lease to own or offer owner financed buying when the property is under lease and you have renters.
What's the advantage of doing that?
What are the details on how to set up the up-front payment, how much would you ask for on a home that could sell for 190K-230K? How much would go to rent vs how much goes to the "buy" on a lease to buy?
If you're trying to do owner financed what are the details and why would you set that up?
The only time I have seen it make financial sense is for low end properties. Owner financing eliminates high maintenance expenses that often come with low end properties. Believe it or not but the ROI can be great. Key is to sell at a higher price than you purchased at. Buy cheap, put a few bucks in it to make it livable, take a fair down payment, tote a note. Lonnie Scruggs is the king of owner finance. I encourage you to read all his books. His focus is on mobile homes but the process can be used for low end single family homes.