Rent to own houses is a convenient way to purchase a home with or without having to pay a large down payment upfront. Perhaps you are wondering how to find a perfect rent to own house in Salt Lake City. Consider some of these helpful tips.
Firstly, finding the perfect rent to own house requires a different mindset. When you rent, you often find yourself putting up with a home’s problems. You tell yourself this isn’t your house that you are just renting. When you do a rent to own, however, you must look at the home from a buyer’s point of view. What you are willing to put up with as a tenant may not be acceptable if you are the property owner.
Never get yourself into a position that you are so desperate to own a house that you will snatch up any rent to own house that you find in your price range. After renting for a couple of years, you may decide that the property has too many problems and that you are now unwilling to buy it.
What are Your Rent to Own Needs vs. Wants?
Before you start searching for a rent to own property, I would recommend that you first make a written list of your needs. Buyers often fall in love with a feature of a home and that love blinds them to the fact that it is not suited to their family’s needs or lifestyle.
Examples of Rent to Own Needs
· Location. Do you need to be close to schools, public transportation or medical facilities? What kind of neighborhood are you willing to raise your family in? How long of a commute are you willing to make every day?
· Size. How many bedrooms do you need? Do you expect to expand your family in the near future? Do you need a basement? Is a single story home better suited to your health needs?
· Amenities. How much storage space do you need? How about a garage? Do you need a laundry room? If the home doesn’t offer one, is there enough space to fit it in?
· Flooring. Floor coverings can be replaced relatively easily. Carpet can be exchanged for hardwood; linoleum for tile. However keep this in mind, if you find a home that already has your flooring of choice, you will spend less.
Now that you have a written list of your needs, now list your wants. Do not expect to find a home that will fit all of your wants. You should ideally look for a home that meets all of your needs and one or two of your wants. These are the little perks that make home ownership enjoyable.
Now you have a list of absolutely essential needs and highly desirable wants. Make a copy of this list. Keep one close by every time you look at a rent to own home. If you are working with a real estate agent, give them a copy. This will help them locate rent to own properties that are better suited to your needs.
Rent to Own Fixer Uppers
If you are interested in getting your rent to own property in Salt Lake City to be worth more than the purchase price, then consider a fixer upper. These will be homes that are suffering from a lack of maintenance, tenant damage or older homes that are in need of considerable updating.
How do you Make Money off a Rent to Own Fixer Upper?
In a rent to own contract, the purchase price is usually set ahead of time. Your goal is to make sure the home is worth more than the purchase price when it comes time to stop renting and obtain a conventional loan. If the property appraisal is more than the purchase price, the lender may decide to apply the difference as additional equity. (Even if they do not, you can wait until the loan is seasoned – from 6 months to a year – and then refinance which will break open the extra equity.)
The key is to make sure that (1) any repairs or remodeling adds more value than the cost and that (2) you are absolutely sure that you will buy the rent to own property when the time comes. Remember that any money you spend on the property will be lost if you are unable to complete the purchase.
How to Complete a Successful Rent to Own Remodel?
To keep remodeling costs low, you may want to do a majority of the work yourself. Before you grab your hammer, consider if you have the skills and experience to complete the project. For example, a poorly completed kitchen remodel could actually lower the value of the home. So, make sure that the job is done right and to code.
How to Protect Your Rent to Own Investment?
Even though you may start out by paying rent, never forget that this is the home you plan to buy. So before you sign a rent to own contract, make sure you pay for a home inspection. Having a trained professional come and inspect the property can give you a real peace of mind. It can also identify costly problems – ones that you have to decide if you are willing to address.
Buying a rent to own property in Salt Lake City is a relatively easy way to slide over into home ownership. If you want to find the perfect rent to own home, however, you have to think like a buyer and not like a tenant. If you would like to have an experienced professional help you, why not contact an experienced real estate agent to help you find the perfect rent to own.