Dixie HomeOwner: Rent-To-Own
The Rent-To-Own Process: A Hypothetical (non-binding) $100,000 house Example
2. You find a great house at 1901 Windsor Avenue, Montgomery.
The market value of the house (based on recent house sales in that neighborhood) is $90,000-100,000.
The house "as-is" cost is $50,000; repair costs are estimated at $15,000; misc. costs will be $5,000.
3. I borrow $70,000 to buy, repair, and get the house ready for rent-to-own.
4. A "rule-of-thumb" for rent-to-own is a maximum monthly payment of 1.2% of the after-repair value of the house.
You contract to rent the house from me for three years at $800/month.
You pay an $800 deposit and the first month's rent of $800.
5. You contract for an "Option to buy the house" within next two years at a price of $85,000 ($5,000 below current market value).
You pay $4,250 as the Option Fee (5%) at the same time as you sign the rental contract.
6. You decide to buy the house after renting for 12 months.
7. Your Option Fee of $4,250 goes towards the down payment of $8,500 (10%), leaving a balance of $3,750 on the down payment to be paid.
8. Your on-time rent payments for the first 12 months give you an additional credit of $2,400 (25% of the rent that you paid) .
You pay the $1,350 balance on the down payment ($8,000 total - $4,250 Option Fee - $2,400 Rent Credit = $1,350).
9. Your rent payment of $800/month is now your mortgage payment; or, you can buy the house from me using other money sources.
10. You are now a home owner, living in the home that you chose, decorated the way that you chose, and with the neighbors and schools that you chose!
Advertised Property This Month
* Re-emerging Capitol Heights Safe Location: 1901 Windsor Avenue
* Move into this clean and neat neighborhood where prices are going up!
* 3 bedroom / 2 bath, 1302 square feet.
* New floor-coverings (tile, refinished hardwood).
* Central heat and a/c, ceiling fans
* Privacy fence, security bars.
* Super energy-efficient: suspended ceiling, storm windows, vinyl siding.
* "Guarded" by Montgomery Fire Department, Unit #507, just across the street.
* Off-street parking inside the lockable, chainlink fence.
It is a good deal for someone with temporary credit problems or wanting to try out home ownership.Full details on this house: 1901 Windsor Avenue, Capitol Heights, Montgomery.
For more information, email me (Jon) at: INTL AT Securenym.net
Email to me with:
where you want to live (Montgomery or Millbrook/Wetumpka/Prattville,
how much you can pay each month (less than 30% of your income),
the completed "Rental Application Form" (below), and
your credit score, social security number, and your date of birth.
Rent-To-Own
Benefits: Your on-time or early rent payments count towards the purchase price!
Reasonable Monthly Rent with a 5% Option Fee
The Rent-To-Own Process
A Hypothetical (non-binding) $30,000 Rent-to-Own Example
1. You find a great house at 168 Conley Circle, Montgomery, 36110.
Your credit score is above 525, and you can spend up to $450.00 per month on housing.
The house comparative market value of the house (based on recent sales in that neighborhood) at $30,000.
The house cost is $30,000; repair costs are estimated at $5,000.
Total needed to borrow will be at least $35,000.
2. I contract to buy the house at $30,000.
3. I borrow the money to buy, repair, and rent-to-own the house:
$35,000 at 12% interest + loan costs = total loan of $39,200.00.
4. You contract to rent the house from me for three years at $403.22/month.
(Based on a 30 year mortgage at 12%)
You pay a $403.22 deposit and the first month's rent of $403.22.
5. You contract for an "Option to buy the house" within the next three years at a price of $39,200.
You pay $1,960.00 as the Option Fee (5%).
6. You decide to buy the house at the end of the first year.
7. Your Option Fee of $1,960.00 goes towards the down payment of $3,920 (10% of the purchase price), leaving a balance of $1,960.00 on the down payment to be paid on the down payment on the house.
8. Your on-time rent payments for the first 12 months ($4,838.64) give you an additional credit (25% of the rent that had been paid) of $1,209.66.
You pay the $750.34 balance on the down payment.
9. Your rent payment of $403.22/month is now your mortgage payment; or, you can buy the house from me using other money sources.
10. You are now a home owner, living in the home that you chose, decorated the way that you chose, and with the neighbors and schools that you chose.
Forms to be completed:
Download a Rent Application Form
Download a Rent-to-Own Application Form
(also called a Lease-Option)
Email them to: INTL AT Securenym.net
See also our Re-Beautified 3/2 Rent-to-Own in Montwood Estates!
Another example: #4 or #118 Stuart Street, Montgomery.
These houses can be bought for about $35,000 each.
They need a new compressor (a/c unit) and other repairs.
You can rent-to-own them at about $500 per month.
Doesn't that sound great?
You can own your very own home! Let's make it happen!!
Contact me (JON) at:
email: INTL AT Securenym.net
(Replace the "AT" with the @ symbol in the email address)
