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Old 01-17-2009, 11:03 PM
 
6 posts, read 19,683 times
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Default Rent to Own in the Bay Area?

Does anyone know of any places that do rent-to-own on the peninsula? I make about $125 K per year, and have about $20K saved for a downpmt (I know, I need to save a lot more and it's going to take a few more years). I know real estate is bad right now, but I pay about $1500 per month now (feel like I'm throwing money away).

I've seen some postings on craigslist of a place that does rent-to-own? Is this a scam or is this legit? Has anyone done this? Thank you!
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Old 01-18-2009, 05:41 AM
 
495 posts, read 1,243,695 times
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Most of those RTO deals are scams. I wouldn't trust anything on craigslist. Be careful. Maybe check in with a reputable real estate firm or realtor and do your research. Everything is possible, even in fluctuating markets. IMO.

Also, in the meantime, if you have space in your living space rent it out to offset some of your housing expenses. More money you can sock away for a downpayment or other costs. Only if you're okay with sharing space of course.

Good luck.
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Old 01-18-2009, 09:05 AM
 
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I wouldn't get into rent to owns but lease purchases are good. Lease purchases are very popular in GA. I've seen a lot of condo's in SF trying to do this at the moment. It might be better to go through a larger company as opposed to an individual. You will need an attorney that can spell out the pros and cons and that can make sure that at the end of the lease you can either extend your time and or actually buy the place when you want to.

They usually make you put up a certain amount of money. You will have to make sure that the other party isn't in default of their loan. You would be better off paying the lease straight to the lender so that you know the payments are going to the right place.

If I were you, in today's market I wouldn't be rushing to buy right now. While there is still a lot of inventory right now, another waive of foreclosures are about to happen. Job losses will still be trending high and banks will still be in trouble. Things will not appreciate to such a high rate in the past so you should be able to afford something soon. If I were you I would wait for at least 2 to 3 years.

There are a lot of scams so do your homework and get the proper representation.
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Old 01-18-2009, 12:10 PM
 
Location: Mountain Ranch, CA The heart of Calaveras County
6,047 posts, read 11,145,009 times
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It's very rare for a lease to own deal to actually make it to closing. 20K down would certainly get you into an FHA loan. Talk to a mortgage broker to find out what kind of loan you would qualify for and then you'll have the answer to your question.
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