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Rent to own homes is a great alternative for locking in a price when they are going up but you don’t have a down payment and your still a year or so away from having your credit repaired. Rent to own homes are a good option to buy the right house at the right time, even if the buyer can’t afford to buy right away. Rent to own homes work for both the seller and the buyer when the contract is well written. Rent-to-Own-EBook-Cover_medthumb

A recent rent to own homes buyer was in the market for a traditional purchase when she saw her dream of home ownership dashed by high prices and an out of reach down payment. She found a $210,000 home she really wanted to live in but just couldn’t get over the idea of spending $2,000 in monthly rent without having anything to show for it. That’s when she approached the seller with the idea of doing a rent to own homes deal.


She decided to take a different approach and asked the seller to consider a rent to own homes arrangement. The seller needed immediate cash flow to cover the mortgage and agreed to the deal. The seller even agreed to credit each month’s rent to the down payment for the first year. Twelve months later the buyer had more than $20,000 credited to the down payment and qualified for a traditional loan.

When Rent to Own Homes Works for Sellers

This method works well for sellers almost any time but becomes particularly attractive when they are having trouble selling the property, are living out of the area, or who have bought a new house before selling the old one and therefore face two mortgage payments. The seller immediately begins collecting rent from a tenant that has a vested interest in maintaining the property and completing the purchase. The deal also locks in a sales price that enables the seller to plan a financial future.

Every month a house sits empty is a lost opportunity for the seller. Making two mortgage payments each month will strain almost any homeowner’s budget. It doesn’t need to be that way when rent to own homes are a viable sales method.

Rent to Own Homes Have Flexible Contracts

Buyers should treat rent to own homes as any other purchased agreement. They should have an appraisal done and have the home inspected. Then the buyer needs to take the step of working with a mortgage broker to develop a plan that will have them qualified for a mortgage before the option period expires.

By working with real estate professionals, including an attorney, rent to own homes can have contracts drawn up to satisfy both the buyer and the seller. The seller no longer has a vacant house to deal with and the buyer is able to overcome down payment and mortgage hurdles.

If you want to work directly with me on the rent to own homes business model or any of the other investing models that have proven highly profitable, please join me at

Besides reading this article about rent to own homes, you’ll want to read this other useful information that I offer free. Please take advantage of it today.

HUD Homes for Sale – Flipping Investors

Land Contract for Profits

Can Landlords Break a Lease Deal?

For Rent by Owner

Protect Your Lease Agreement with an Option to Purchase

Homes for Rent or Flipping for Profits

How a Land Contract or Owner Financing Can Work for You

Several times each week, I make the most current real estate investing information available to readers. This time, it’s about the rent to own homes investing model but the information I provide changes constantly to stay current with the market. Be sure to check back at: Also, get started learning how to do NO CASH lease options on real estate by picking up a copy of my bestseller book: Investing in Real Estate with Lease Options and Subject-to Deals

By Wendy Patton

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