Rent to own works well in an appreciating market if you want to 'lock' in a return. Most guys thinking about rent to own don't understand that for this to work, there needs to be a chance they are giving up some of the upside to the tenant-buyer. Negatives is that if the market doesn't go up, the tenant-buyer is trying to buy a house at credit card rates with a high chance their initial deposit is worthless.
If you had $15,000 to invest would you buy an ETF or start playing in the options market? That is the fundamental failure of rent to own.
It works fine if the market goes up and the investor accepts they will make a slightly lower return with a defined exit.
If you had $15,000 to invest would you buy an ETF or start playing in the options market? That is the fundamental failure of rent to own.
It works fine if the market goes up and the investor accepts they will make a slightly lower return with a defined exit.