I own some properties that have renters that are interested in a rent to own program.
My understanding is to go for about 5% down, so on a $200k we would be looking at $10K down.
My questions are:
1. What do I give him for security on his 5% down.
2. What premium would I look for on his monthly rent? (Rent is now $900)
3. What is the best way to set up the buy-out price?
4. In explaining that he now owner and not renter, though I still hold the mortgage, how do I go about having understand this?
Thanks for any light you can shed on this situation.
My understanding is to go for about 5% down, so on a $200k we would be looking at $10K down.
My questions are:
1. What do I give him for security on his 5% down.
2. What premium would I look for on his monthly rent? (Rent is now $900)
3. What is the best way to set up the buy-out price?
4. In explaining that he now owner and not renter, though I still hold the mortgage, how do I go about having understand this?
Thanks for any light you can shed on this situation.