How To Do a "Rent To Own" Start to Finish

Member since 2021 · 2 posts · 0 votes

Good morning.

My partner and I are buying a single family in FL. I need to know how to do a "Rent to Own" properly as part of the strategy for this unit. Does anyone on this forum know how to do this OR if not the name (organization) of someone who does?

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Duncan Hayes

Member since 2025 · 5 posts · 2 votes

What exactly are you trying to find out? How to structure the deal? How much to sell for? How to determine payments?

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Duncan Hayes
Member since 2025 · 5 posts · 2 votes
1y
What exactly are you trying to find out? How to structure the deal? How much to sell for? How to determine payments?
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- Robert Mitchell
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  Member since 2021 · 2 posts · 0 votes
  1y
  Quote from @Duncan Hayes:
  
  What exactly are you trying to find out? How to structure the deal? How much to sell for? How to determine payments?
  
  My partner and I did buy the single family. We are looking to have it rented or LO by May 1st. You have good points. All of the above in terms of your questions and any thing you thing we should consider. We have a framework of either collecting the option fee upfront and having the lease higher which would included the down payment savings for the person(s) leasing. We would consider selling within a 3yr to 7 yr window at an appraised price for the property. All costs for the home's upkeep would fall on the leasee under a LO agreement. Thanks for the input.
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- Don KonipolBusiness Member
  Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
  1y
  Quote from @Robert Mitchell:
  
  Quote from @Duncan Hayes:
  
  What exactly are you trying to find out? How to structure the deal? How much to sell for? How to determine payments?
  
  My partner and I did buy the single family. We are looking to have it rented or LO by May 1st. You have good points. All of the above in terms of your questions and any thing you thing we should consider. We have a framework of either collecting the option fee upfront and having the lease higher which would included the down payment savings for the person(s) leasing. We would consider selling within a 3yr to 7 yr window at an appraised price for the property. All costs for the home's upkeep would fall on the leasee under a LO agreement. Thanks for the input.
  Why would a renter enter into such an agreement? Why pay a lot more than fair market rent just to have an opportunity to purchase at “appraised value”? If the renter was locking in a definitive purchase price, and that price had a chance to be well below appraised value at the time of purchase, then maybe it might have an advantage for the renter.
  
  Please realize I’m NOT saying you won’t find someone to enter into an agreement like this with - the world is full of people making less than optimal financial decisions.
  Private Mortgage Financing Partners, LLC
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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
1y
@Robert Mitchell
One basic structure is that you enter into a contract with an agreed purchase price and timeline to make the purchase. The payments are generally more than your rent with the extra amounts going to the down payment. After a set amount of time, you get the choice to complete the transaction (buy the house) at the agreed price or not buy the house and the owner keeps the extra amount of the rent payments. Talk with the owner and a lawyer on how the specifics of a deal are structured.
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