This 3 bedroom rancher has an open floor plan, stunning view and a TON of potential! Located near Woodmen and I-25, listing for $225K – this one will go fast! Call Rob @ 719-440-6626 or email email@example.com.
The answer to this one is complex. The short answer is that in this market, they generally don’t have to. The demand for housing is high and interests rates are so low that the majority of buyers don’t need this type of financing, either.
The longer answer is that a rent to own is not a simple transaction. A lot of folks think this is an easier option than a traditional purchase but that’s not the case. Generally speaking, it’s more advantageous for a homebuyer to purchase a home “traditionally” than rent to own (a.k.a. lease options) a home.
Rent to own (lease option) often requires a substantial down payment. Also, this money is lost to the seller should you the buyer choose not to execute a sale.
That said, they have their place in a market. If a person would like to buy a home but needs time to work on their credit, it’s an option. However, always consult with a lender, Realtor and attorney prior to signing or drafting a lease purchase option contract.
**THIS IS NOT LEGAL ADVICE**
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You won’t regret it! Ask about the military buyer credit, too! Call Rob at 719-440-6626 or email firstname.lastname@example.org.
It’s really quite awesome to be an agent and see that moment when someone walks into a home and knows “it’s THE one.”
These are three factors to consider when selling a home, too. Do you have a good location, is the condition good and is it priced well?
Looking to buy or sell a home in Colorado Springs, call Rob at 719-440-6626 or email email@example.com!
Good question! Short answer: property and mortgage values and cash flow.
Longer answer: it’s a function of the dymanics of the city. As someone looking to buy rental property myself, here’s the analysis I use in looking at this. If you want to buy a $150,000 home, as an investment, you need 20% down. Let’s assume $1000 a year in insurance and another in taxes.
For investment purposes then, this home is going to cost a $30,000 down payment and at a 4.5% APR, cost a landlord $777 a month to pay principal, interest, taxes and insurance.
A landlord is going to need cash flow, too, to be prepared for emergencies and have a return on their investment. In this case, that $150,000 3 Bed, 2 bath home may rent for $1000 or $1050. This isn’t profit for the landlord, necessarily, as there are taxes and maintenance of the home involved, too.
It scales from there…a $175K home requires a 35K down payment (as an investment property) and costs $878 a month to carry in this scenario.
LARGE CAVEAT: This is for a 20% conventional loan, investment property. An owner occupied home will require much less down but have a higher overall mortgage as a result.
Looking to buy or sell a home in Colorado Springs? Please call Rob at 719-440-6626 or email me at firstname.lastname@example.org.
*Reprinted with the permission of the party whom asked.
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