Status of the Rent to Own market in Los Angeles??

2 Replies

I know that housing prices, generally speaking, are through the roof in the Los Angeles area. What I was wondering, is how is thay affecting the RTO business in that area? Are the super high prices killing the number of viable, but credit challenged, buyers??

That’s a good question. I mean I’ve been taught that rent to own works in any market regardless of price. Whether you agree with that or not is up to you. You should be focusing on finding sellers for these deals. Finding buyers is easier. Not easy, but easier.

@Rudi D'escalarre I can't see the L.A. market being suitable to a Lease to Own program due to property values. Our Lease to Own portfolio is placed in the Midwest due to land costs. Due to land/development costs in/around L.A. I can't imagine an LTO investment penciling out in regards to cash flow. If you have the financial health to cover the monthly loss (difference between overhead & lease payment) and hold for appreciation, that's a different topic. In my opinion an LTO program is very market specific.