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Can I Actually Rent-to-Own a Home? – In today’s economy, there are many people who would like to become homeowners but lack the means to do so. For them, a rent-to-own arrangement can appear to be an attractive option. But how do these.
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Process Involved in Rent-to-own Homes – How Rent-to-own. – How Rent-to-own Homes Work. Renters also have to pay an option fee and then a rent premium. The option fee is a set amount that the renter pays the seller. If, at the end of the lease period, the renter buys the house, the option fee becomes part of the down payment. If the renter doesn’t buy the house, the option fee becomes income for the seller.
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"Rent-to-own can also benefit the seller in that any potential capital gains taxes are mostly deferred if the property is an investment property." Now that you understand how rent-to-own works, it’s time to dust off those dreams of homeownership. With the right rent-to-own agreement, you could be a property owner sooner than you may think.