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Using Lease to Own As an Exit Strategy on a Real Estate Investment

When it comes time to sell your rental property, you might want to try selling it using a rent to own or lease to own agreement. This type of agreement allows your tenants to live in the home as a renter as they work towards purchasing it from you.
In a rent to own situation, you would typically have a standard rental lease along with a separate contract that contains the option for the tenant to buy the rental property during a set time period. The price of the property is listed in the contract (and is usually slightly higher than market value today to account for inflation or appreciation), and if the tenant buys the property, you must sell at that price. However, the tenant can decide not to buy and are not obligated to buy. They simply have the option to purchase.
Here’s simply how rent to own …