Lease-to-own: How do I find an opportunity?

Question

Bill B. · Answer

If you go with older listings or expired ones. Concentrate on ones that are empty, no furniture. That means they’ve already moved out and are paying two mortgages.

You could also reach out to local PMs that are managing rentals. Ask them if any of their landlords would be interested in rent to own.

You might get farther calling it rent with the option to buy. In some markets rent to own creates a legal bond that’s harder on the seller/landlord to evict so they deny it outright.  Rent with an option is just you pay rent and have the option in the future to buy at a price you set today. Usually you lay some amount of money for that option. Good luck. Try the PMs. Your realtor should also be able to search notes for rent to,buy, seller financing and the such.

Jimmy Lieu · Answer

Hi Aggy, rent-to-own opportunities definitely exist, but they can be harder to find because most aren't listed publicly the same way traditional rentals or home sales are. One approach is to look for homes that have been sitting on the market for a while and see if the owners would consider a lease-option arrangement. You can also network with local real estate investors, landlords, and property owners since they're often more familiar with creative financing options than traditional sellers. Just make sure you understand the terms very clearly before signing anything, especially how much of your payment, if any, is credited toward the future purchase, how the purchase price is determined, and what happens if you decide not to buy or can't qualify for financing later. Since your goal is to make this your last move and eventually own the home, it may also be worth comparing a rent-to-own structure against simply renting for a year or two while continuing to save aggressively for a down payment. Sometimes the flexibility and simplicity of a standard lease can outweigh the benefits of a rent-to-own agreement. Welcome to BP, and best of luck with your search!

Owen Lombardi · Answer

Hey Aggy — I'm based in Rocklin and Granite Bay and know this area well. Lease-to-own deals in this area definitely exist but they require connecting with the right seller. I work with a network of off-market sellers and investors who are sometimes open to creative structures like this. If you're still searching in Rocklin or Granite Bay I'd love to help — happy to chat.

Drew Sygit · Answer

You don't find them, you create them!

Look for properties on the market for 120 days plus and find an agent to offer lease-option or land contract terms.

Minho Lee · Answer

Rent-to-own can be tough to find because most of those opportunities aren’t publicly listed, which is why a lot of agents aren’t as familiar or comfortable with them. The best way to approach it is usually more direct, looking for homes that have been sitting on the rental market for a bit and reaching out to landlords to see if they’d consider a lease-option or rent-to-own structure.

You can also look at homes that were listed for sale but didn’t sell—sometimes those owners are more open to creative options like renting with a path to purchase.

That said, based on what you shared, it may also be worth talking to a few lenders if you haven’t already. You might be closer to buying than you think with some of the lower down payment options out there, even for larger homes. Also, talking to investor friendly agents is another good way to get a direct access to off-market deals.

Ryan Spath · Answer

Try to find homes that were purchased in 2021-2022 and that the buyer put 3.5 – 5% down, there is a high likely hood the person will have to bring cash to the table to sell traditionally on the MLS after paying broker fees and closing costs. You can use a tool like prop stream to help with this. Possibly call all the FSBO on Zillow and ask the person if they are open to this. Good luck!

Lease-to-own: How do I find an opportunity?

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