This type of real estate deal entails an agreement to rent a property with the option to purchase it at a predetermined date and price. Under some structures a portion of the rent paid during the lease period can be applied to the purchase price. Also, during the lease period, the purchaser/lessee can use that time to save for a larger down payment or fix personal credit issues. As a third incentive, the purchaser/lessee can move into the property, get to know it thoroughly, get to know the neighborhood, and either complete the purchase or walk away from it, if the property turns out to not be suitable for him. For the seller, the rent to own option adds value to the sale of the property and broadens the market for potential buyers.
Things to consider when structuring a Rent to Own agreement:
The Rent to Own agreement has many benefits for a real estate purchaser. If structured correctly it locks in today’s price for a future date. It allows the purchaser/lessee the opportunity to live in the property and get to know it and the surrounding neighborhood before actually taking title. This lease period also gives the purchaser time to improve their credit or save additional funds that can be applied toward the purchase price.
The estimated rental value for Morningside Ave located in Sioux City, IA is $1,960/month. Comparable homes around Morningside Ave that are rentals have monthly ranges starting as low as $1,670 per month and as high as $2,250 per month. An owner looking to use this property as an investment could bring a return in the area of $1,670 - $2,250 a month based on the many factors which include the properties condition, type, amenities, etc. Sign in to view a full two years of rental information as well as the Average Market Value (AVM) of this property.
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