It means you can rent the property while you build your credit in order to buy the property.

Current value of the property based on comps: 122k

Rent to Own:

Purchase price: 110k
Minimum Downpayment: 5k
Rehab needed: 5k
Rent per month: 1200
Period: 2 years

This means you need to make the down-payment of 5k out of the purchase price of 110k. You can then move into the property and pay a rent of 1200 a month. Anytime within the next 2 years, you can purchase the property by paying the remaining 105k. You can choose when the purchase happens. It could happen in the first month or the 23rd month. It’s up to you! It usually depends on how long it takes for you to build your credit and get a mortgage

This would be great news for you! Regardless of how much the value of the property increases, your purchase price will remain the same 🙂

All the benefits of appreciation go to you. The projected increase in the value of your property is 7% over the next one year alone. This means you are building 7% equity even before you purchase the property.

You are not responsible for taxes and insurance payments while you are renting. The landlord is responsible for them. You only have to pay rent.

Once you purchase the property, you will be responsible for the taxes and insurance.

As the future owner of the property, you will be responsible for the upkeep of the property.

Any amount that you pay above $1200 a month will be credited towards reducing your purchase price.

The Property needs a light rehab worth around 3k in flooring in a few areas.