OK, I need to chime in here… having done all and more than what was discussed above.
Rent to own is a viable option… with fair parties on both side, when the right buyer, seller and house all meet.
We have owner financed people on some of my flips… which was almost a rent to own in the end… often people are poor at saving…so if we play bank, its a way to “make them do it”.
For instance, I am just finishing up a 4 unit in schenectady… all new siding, windows, cabinets, counter tops, vinyl and harwoods being redone now. All new electric panels, and most new plumbing. All serviced boilers, (seperate heat and electric for each unit)… the 4 unit is basicly “turn-key”. New front steps, railings…doors, yada yada yada. Built it so the buyer can come in, make money and not have all those nagging calls. New faucets…new drains…and so on…
I know damn well the investment market it tight because it often requires 30 percent down… and if you have cash, you may not want or need this particular property… but for the average Joe, this place will definately profit over $1000 a month and they may be able to get in with very low money down because we will work with the buyer… or more importantly, decent money down and we can hold a mortgage they may not be able to get… no matter how one looks at it, ya pay alot of interest to the bank or seller… so in a case like this, I could rent the whole building out to the buyer at a good discount, let him make his nut, and when there is either enough banked for him to get a loan, or he finds other means to take ownership, the transfer happens. thats a mutually beneficial rent to own type of deal. Talking less than 125k for a very updated building on a nice street…new sidwalks… few neighbors… neighborhood is for renters, not us fine Shifters. tho
BTW, just to be sure i violate the forum rules, I will soon have a nice 3+ bedroom in Colonie, nice colonie, not menands, schenectady or exchange st stuff… with a 2 car garage… freshened up in a great neighborhood for $139k… well below any comps… this should be a 7-10 day sale cycle once I put it on… at the end of September or so…
The best bet may be what we did in the early 90’s, equity sharing.
4 Unit