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Author: dualchgwp Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 13972  
Subject: Lease to own? Date: 6/7/2013 9:19 AM
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I did a search and couldn't find any discussions on this subject. If there is one, could you point me towards it?

If not.... maybe I could pick your collective brains?

I own a home, no mortgage. Worth approx. $850,000. I have it rented for the past year, and decided I would sell the house. The rental is paying all costs and I am making a monthly profit. I have been contacted by someone interested (not listed on MLS yet) in purchase, but the house is higher then they wanted to spend, but they still want to talk.

The renters have shown interest in buying. But they are small business owners and cannot do it right now.

Long story short..... I do not need the money from the sale of the house, it would just be put somewhere to collect some sort of interest. I own another home that I live in with no mortgage on it. I started to read about lease/purchase options and from the sellers point of view looks like it is a good deal for me. Been trying to read both pro and con articles.... I am positive there are many down sides.

Reading the articles I would collect a rent, and a portion of that rent would go toward their down payment. If they decided not to purchase at the end of the alloted time, then all that would stay with me. (?)
It appears that many of these lease purchases never get executed. At least that is what I am reading.

As an investment, this seems like a good deal for me.... those extra payments would go into my pocket, I still own the property, and can either do it again, or sell the house.

Has anyone done lease/purchases? Can you share both the good endings and the nightmares? Suggested reading?
Thanks....
Dual
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