Rent-to-Own Is It Right For You By Tom Beaty In today's economy, rent-to-own property is becoming a popular alternative. In this type of real estate transaction individuals pay monthly rent to the homeowner with the intention of purchasing the property within a specific period of time. A percentage of the rental income is applied to the purchase of the home. Rent-to-own real estate transactions typically involve renting the property from the homeowner for a period of three to five years. Oftentimes, potential buyers are required to pay the homeowner a down payment of three to five percent of the purchase price. For instance, if the home is valued at $100,000 and you make a down payment of $5,000, the purchase agreement will reflect a purchase price of $95,000. Next, a percentage of the rental income will be applied to the purchase price of the home. This can range from 5 to 100 percent and will depend on the arrangement you make with the homeowner. It's rare to find a homeowner...
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