Rent to Own (rental property, real estate, downpay, tax)

[mrsengle]

I've been looking at Seattle real estate. We couldn't afford to buy a home there (without a hefty downpayment), so I've been checking out rental property. The rent there is about the same as a mortgage payment here in Austin (much more do-able). I saw a number of advertisements for rent-to-own properties. I've never seen it here (doesn't mean they aren't there, I just haven't been looking), and I was wondering if this was a fairly commonplace practice to buy real estate in that market (or a comparable one)? I did a quick google search to get more information on the process, but I didn't find much. Intuitively, I don't trust it. I just didn't find much information on my own to run the numbers. Does anyone have experience with this, or can anyone point me in the right direction to find out more? Also, do you know if there is any tax benefit (I'm guessing there is not, but thought I'd ask). Thanks!

[shellytc]

I recommend googling rent to own homes and you will find some great articles. I also like Realty Times - Real Estate News and Advice, put rent to own in the search and many articles will come up. usually, you will need to pay over market price for your montly rent. Anything over the market is earmarked for your downpayment amount. it must be structured so that the mortgage company can see what you have paid into it and can truly be attributed to over market rental so it can be counted.

And you purchase some time in the future at an agreed to price now.

Why not just rent and save your own money in your savings account and earn interest on your money?

And no, I don't know of any tax advantages for you. BUT, I am not an accountant, nor do I play one on TV, so you would need to check that.

Shelly