Quote:
Originally Posted by baddog
Anyone ever do othis, either as the rentor or landlord? How exactly does this work?
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When I lived in FL i rented a townhouse with an option to buy. I locked in the price and actually wrote a purchase contract to buy the home at the same time I signed the lease to rent it. I got 50% credit towards equity for rent and when I went to buy it I knew I was moving out west so I just flipped it and happened to sell it for 40K over what I had agreed to buy it for. The RE market was a lot better a few years ago so not sure if that would happen these days.
As a seller I would give the option to buy at a set price but not at today's value. I'd figure out what you want out of it - sell in 2 yrs for 20% more than today's value and give rent credit as an incentive. You should also make the option to buy unassignable.
As a buy buyer I'd want to lock the price in as cheap as possible, get rent credit towards equity and plan on selling it if i chose not to buy it.