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IsisZion used the term "lease-option". In your reply you used the term "lease-purchase". Don't mean to split hairs but the difference is worth noting. In a lease-option - There is an obligation to meet lease commitments and an option or "choice" to purchase the property , usually on a date certain. A lease-purchase generally obligates both the lease AND the purchase of the property, i.e. it is not an option to purchase but rather a contractual obligation ....

So, as an investor - I prefer to use a lease-option going into a property - negotiating as long a lease as possible at as low a rate as possible, with a fixed purchase price that allows me to buy or walk.
I've used a lease-purchase as an exit strategy - bumping the tenants rent UP(so they can prove they are capable of meeting future mortgage obligations), applying a small amount per month towards the future down payment - and selling the property(1 year later in my case) as per the contract.

My two cents, 11
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