BRR2OR?

2 Replies

Rather than simply finding a renter, what about offering your listings as a "Rent 2 Own" type deal?

Tenants take on a different mentality than just pure renters; they'll take care of your property better.

If they bail, you keep the deposit. (And it's my understanding that they bail more often than not)

And if they DO purchase the house you'll only be hit with long term capital gains, as you would have held the property over a year.

Thoughts?

That's fine as long as you aren't a buy and hold investor @Ken Badziak . I wouldn't spend too much money looking for this type of renter unless this is your goal. It can't hurt buy I'm guessing you are going to have to offer the property at a discount in order to get a rent to own tenant vs just selling the property. I guess it's just not for me. 

@Ken Badziak  I love doing this with my higher end (in the rental world) homes. I love to hold bread and butter 3/2's in working class bedroom neighborhoods, but  renting out conventionally a $200k house for $1400/mo doesn't make much sense and I am not an appreciation speculator.  Make sure there is not 'rent to own' language in your agreement.  Have a completely separate lease and option to buy.  Say 'option consideration' not deposit or down payment.  Plenty of info on the site on how to do properly. If the property fits, it's a great way to go!  

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