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Author: JonathanRoth Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 13936  
Subject: Re: Lease to own? Date: 6/7/2013 12:09 PM
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I wouldn't assume that the property wouldn't sell. Here's a situation you need to consider.

After 5+ years of declining housing prices values start to rise. Early in the rise someone for a small percentage of the property value (let's say $300/mo on a $500k property = 0.72%) locks in the price and the rise in property values continues to rise 2% for the next two years. So from the buyer's view at the two year mark, they are buying a $520k property for $507k or a 2.5% discount. At 4% increase the discount becomes 6.2%. 5% = 8% discount (44k).

They'll still need to qualify, or, just position the property to flip and not have to put up any cash.
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