Home Buying in Wayne State>Question Details

Quinchella, Other/Just Looking in Detroit, MI

I just entered into a rent to own contract because of low funding to outright buy. I wish to start renting it

Asked by Quinchella, Detroit, MI Tue Apr 22, 2008

out but can't afford to really fix it up and I can't even get a mortgage because I technically don't even own the house. What should I do?

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Mike Ockert’s answer
Quinchella, in most cases a rent to own is not transferrable and usually outlines whether or not the person initally entering into the contract can turn around and then rent the home. However, if you can rent the home out you can have the new renter make improvements to the home as a trade for lower rents than originally contracted with the tenant. Thereby making improvements, but not out of your pocket. Secondly, make sure that all rents that you pay are by check! Reasoning is that when you do try and get a loan you can show a bank, by cancelled checks, that you alone have been making the payments for 12 consecutive months.
0 votes Thank Flag Link Tue Apr 22, 2008
Quinchella, Your contract will have most of your answers. If the contract specifies you can do repairs then you can do repairs. Please remember that unless your contract specifies, you may not get any money back for repairs you do on the home if you do not purchase as agreed.
0 votes Thank Flag Link Tue Apr 22, 2008
So, you have a lease option and you want to basically sublet the place to hopefully clear a profit? You need a good mortgage consultant and boy do I have a good one. He specializes in investment properties and things of that nature. He's the kind of guy that thinks out of the box. Give me a call or drop me an email, I will put you in touch with the right people ... no obligation, just good advice.
0 votes Thank Flag Link Tue Apr 22, 2008
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