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Is 'rent-to-own' usually successful?

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January 30 2011 - Stow
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They can be successful but it is difficult to negotiate an agreement that is fair to both the buyer and seller.  Most renters do not have the up front deposit necessary to pay for that option to lease; if they did, they might be buying. However, that does not mean it is impossible.  With the right representation and willingness of all parties, it can be an option for some people.
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February 02 2011
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Usually they don't work out, and tend to cause a lot of heart ache and lost money for the potential buyer and seller.
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January 30 2011
i have seen it work great a number of times. Be sure to get some consideration for the option to buy($5000) so that the renter(buyer)
knows he has something to lose if he does not exercise the option to buy.
This is a great way to get income from your home and also get it sold
within a year or at the worse make an extra $5000 at the end of the option. From the buyer viewpoint , they get a nice place to live ,have time to accumulate a downpayment and also clean up their credit issues. Good lick!
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January 30 2011
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No. Rent to own is often not successful from what I have seen. There are too many variables from the buyer be able to qualify for conventional financing at current interest rates to who pays for repair work on the house during the contract to how much will the property be worth when the contract is finally executed and whether it will appraise.

I won't say that it can't work, but I will say that it often doesn't work. The increased length of the transaction can make it financially dangerous for both buyers and sellers.
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January 30 2011
They are also few and far between.
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January 30 2011

Rent to own can be successful but more times than not they don't work out. With the market changing it is possible to enter a rent/lease to own and have the homes value drop and not appraise for enough to secure a loan at purchase time.

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January 30 2011
 
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