Although I am new to the forum, I have been a rental property manager/owner for the past 12 years and just recently have started to educate myselft as to REI and a variety of options it offers. I really enjoy the education I am getting through these very informative and educational posts. I was approached recently by one of my tenants-a family of four, as to purchasing the house they have been renting from me for the past 3 years. They are a good folk, have a pretty good rental history with me (3 lates in 3 years) and I would like to help them buy it.
I read here that Texas and Colorado has had their laws changed as to the Leasing Option? I would like to sell them my house with owner financing for 30 years to avoid the capital gains if that is at all possible?
What are some of the factors I should be aware of when it comes to owner financing? How would I need to go about structuring such a contract?
Your response and expertise are greatly appreciated.
I am in the same situation here. I have a SFH that i want to offer to my tennants. I have a $52,000 mortgage and the house was appraised at $58,000 derived off of comps. I want to offer them to buy it for $55,000 and they put $1,500 down. I already have $550 for security deposit, and they pay $550 per month in rent. I am wondering how i go about doing this? I want to do owner finance of maybe a 5 year deal paying the $550 per month and a balloon payment at the end of the 5 years. The question is, how do i go around this with my current mortgage provider, and do i do a quick claim deed to title it in their name? If somebody can help me on how i should do this, it would be greatly appreciated.
I just did some research around and I recommend you get a hold of any info you can on a Wrap-around Mortgages, also known as All-Inclusive Trust Deed. I am looking into it myself although I do not have a mortgage on that rental property. Just make sure you do not have due on sale clause in your current mortgage. Hope this bit helps.