Bianca Bennett | Prestige Realty
Office: 480 773-7400
Cell: 602 570-7898
Fax: 480 444-1447
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Each situation is different, but for most people it's not. A rent to own generally requires an up front non-refundable deposit and over market rent. Your initial deposit and a small portion of the rent may accumulate to be used for your down payment, but only if you can get a mortgage when the option is due. Most people in these situations are worse off when this happens and lose their deposit and extra rent payments. Landlords love them, they can "rent to own" the same house over and over and make extra money.
My opinion is that most people are better off renting the cheapest place they can stand to live in and addressing whatever issues are keeping them from doing an outright purchase now. Fix your credit, save the down payment, pay off your bills, whatever it takes.
In a Rent to own, you are a renter, not an owner. The real owner can lose the house in foreclosure or try an change terms or even sell it out from underneath you. There is just too much risk and not enough reward. On top of this, very few landlord/sellers are willing to do this, so your selection of homes is few and far between.
You may have the diamond in the rough and the ideal situation, but for the vast majority, its a bad choice.