Tenants, curious how rent to own works? Below are two examples of a purchase.
Example #1 of rent-to-own home purchase
In this example, a home owner wants to purchase a home for $400,000. They can afford a monthly rent of $4000. The home owner can get connected with an investor who can purchase the home on their behalf with the agreement of a one-time lease option fee of $28,000.
Once the home owner has rented the home for 18 months, they can choose to purchase the home from the investor for the previously agreed upon price of $429,000. At this time, the home owner will be able to take ownership and gain $35,000 of equity in the home.
If the home owner chooses to wait until 36 months before purchasing, the price, previously agreed upon, will be $445,000. Purchasing at 36 months, the home owner be able to take ownership and gain $42,000 of equity in the home.
Example #2 of rent-to-own home purchase
In this example, a home owner wants to purchase a home for $195,000. They can afford a monthly rent of $2235. The home owner can connect with an investor who can purchase the home on their behalf with the agreement of a one-time lease option fee of $16,000.
Once the home owner has rented the home for 18 months, they can choose to purchase the home from the investor for the previously agreed upon price of $214,000. At this time the home owner will be able to take ownership and gain $17,994 of equity in the home.
If the home owner chooses to wait until 36 months before purchasing, the price, previously agreed upon, will be $224,000. Purchasing at 36 months, the home owner be able to take ownership and gain $20,200 of equity in the home.
Zegacy can help you find your dream home
Getting started is easy
01
Sign up for Zegacy.com and submit the home you want
02
Get matched with an investor and agree on monthly rent
03
Sign lease agreement and move in!