While rent-to-own is frequently discussed from the consumer standpoint, not much information exists for the landlord. Today we would like to give some rent-to-own advice for landlords to make their home listing more appealing.
Why Rent to Own Homes are a Great Investment for both Landlord and Renter
With a good win-win rent-to-own contract, a lease-to-own home can be a great investment strategy for both the homeowner and the renter. However, like any contract, you should carefully read through the details to make sure the contract doesn’t disproportionately favor one side over the other.
Let’s start out with why a rent-to-own home is a great investment for renters who would like to become homeowners.
In this blog, we often talk about the benefits of renting-to-own a home. However, it’s important to discuss all aspects of rent-to-own so consumers can weigh all the pros and cons before making a decision. Buying a home through a traditional mortgage or other means is a big decision. Be sure to take time to determine if this is right for your current financial situation, as well as your future. (more…)
If you plan on becoming a homeowner, setting and sticking to a budget is a must. Budgeting will help you save for a down payment on your new home, as well as help set aside money for emergencies or vacation. Whether you’re looking to buy a rent-to-own home with a deposit, a HUD home with low down-payment requirements, or a traditional mortgage; wise money management is a good skill to have early on.
How to start creating a budget:
When starting a budget, the first thing to do is take an inventory of your current financial situation. This will help you see areas where you may be wasting money, as well as get a good idea what your income to debt ratio is:
So you’ve decided to buy a home. You’ve researched your options, read up on what a HUD home is, and are now curious – is a HUD home right for you? The decision to buy a HUD home can be very situational. Let’s look at some common pros and cons to help you decide.
Benefits of Buying a HUD Home:
There are many pros to buying a HUD home. If you qualify to buy a HUD home, you would be eligible for the following benefits:
- Assistance from HUD with closing costs (this can be up to 5% of the purchase amount)
- Faster closing if you’re using an FHA loan to buy the home, as these are already pre-approved.
- Low deposits, making entry into the home market an affordable option to many.
- HUD homes prefer buyers who will be living in the home over real estate investors more interested in flipping or renting the property.
Everywhere you look these days you see apartment complexes popping up. It does not matter if you are in a poor neighborhood or a high-end neighborhood, multi-family rental buildings seem to be the choice for investors these days. Most of these complexes come with all the bells and whistles to attract tenants from all walks of life and all age groups, you will see them equipped with amenities such as fitness centers, yoga rooms, free breakfast, theaters, multiple pools, indoor basketball courts, VR golfing rooms, saunas, hot tubs, and the list goes on and on. These places all look too expensive to afford but when you consider having access to these increasingly extravagant amenities these places seem like a great deal.
It does not matter where you live whether it be in suburban areas, a city or small town; nor does it matter if you are looking to live in a single-family house, townhome, condo, or an apartment there is always a commitment of time searching online or driving around finding the right place to call home. How do you know what to look for in a rental listing?
Which are the most affordable cities for renters? It would have been easy to just look at the lowest average rent payments and called it a day but we decided to take a deep look at over fifty of the largest cities in the US and scored them based on a number of factors including population, quality of life, affordability, unemployment, average income and many other factors . After all our hard work and research we are happy to share our findings for the most affordable cities for renters in the United States. These cities may not be the lowest rent, but they are the most affordable when considering a number of key factors.
Finding the right home to buy is not as easy as it seems. There are plenty of decisions to make far before ever beginning to look at homes for sale, and there are many factors that go into deciding to buy one home over another. Here are some home searching tips to help narrow down and pinpoint the right type of home to buy and at the right price.
Saving up enough money to buy a home can be challenging for most anyone, but that burden is particularly heavy for first-time homebuyers. Just coming up with the whopping twenty percent down payment. Over half of Americans do not even have one thousand dollars in savings much less fifty to eighty thousand lying around for a down payment.
The good news is you may not necessarily need the full twenty percent down if you are a first-time homebuyer. The average down payment is more around eleven percent, and among buyers under the age of thirty-five, it is even lower at around eight percent. However, even at eight percent in some areas like Los Angeles, San Francisco, or New York City eight percent is can still hover around forty to fifty thousand dollars.