Watching the market, purchasing at the appropriate time is importune. Understand the seller wont want to give the property up if values have gone up.
You need to work with someone who understands the market as well as the pitfalls of the rent-to-own contract.
From what I've heard, because of the strong market in areas of California, it may be more difficult to find than in some other parts of the country. Still, they're out there. Here's a link to a blog I wrote on how to find rent-to-own properties: http://bit.ly/findaleaseoption
Hope that helps.
Larry Webb, Ph.D., MBA
Broker Associate/Agent – REALTOR®
Century 21 Award - Fine Homes & Estates
Orange County, California
Video Biography: http://www.DrLarryWebb.com
See my professional recommendations on Trulia.com
CalBRE Real Estate Broker’s License: 01413405
I had an offer from a potential tenant to rent my house then buy it in a year. I was actually impressed with his proposal. It was a good deal for him and a good deal for me. However, I decided to sell the property to an all cash buyer with a 30 day escrow but for a lower price because there were too many variables and because of capital gain issues with the rent to own offer. Otherwise I would have accepted the rent to own offer. That situation is rare.
Salley and Alex gave you sound advice. Save money for your deposit, maintain excellent credit, and research the areas you want to buy in. (I know it sucks to rent and to have that money go towards another person's mortgage. But most of us rented before buying.) Also look for a reputable lender who can advise you on your options. I have a few lenders I completely trust.
Also I know of a few landlords who eventually want to sell their rentals in Huntington Beach and nearby areas but not in the city of Orange. If you plan on pursuing a rent to own situation, text, email or call me and I can give you more detailed info.
Hope this has been helpful.
Berkshire Hathaway Home Services
I would be glad to assist you! I specialize in Orange, as I have been a resident for over 15 years.
Contact me today to get started!
Nicole Fedorchek, Realtor