Rent-to-own advice for STR
Hello! I am in the early stages of my real estate journey and am looking to delve into short-term rentals. I've done my due diligence on AirDNA/ Mashvisor to narrow down on a profitable location. I recently found a deal for a furnished property, where the owner is offering rent or rent-to-own options. The rent-to-one option would be ideal for me, since I don't have the cash for a down payment at the moment. Below are the details.
What should I look out for in a rent-to-own deal? Any advice is appreciated!
- Listing price to buy: ~$700k a few months ago
- Rent: $3.4k
- Master lease up to 2yr
- $10k initial nonrefundable deposit towards down payment
- 15% of rent will go towards down payment
- First month, security deposit, and $10k due = $16.8k