Looking To Buy A House To "rent To Own" To Someone Else
what kind of property should I look for since I am just starting out and have no money?
what kind of property should I look for since I am just starting out and have no money?
It's not as much about the property as it is the deal.
You'll be looking for owners that need to sell as opposed to those that just want to sell, or are just thinking about selling.
The majority of homes in your area fit into a certain profile. Generally 3+ bedrooms, 1-1/2 to 2 bathrooms and al least 1100 square feet, preferrable larger. The reason for this is that these houses have a larger potential consumer base to market to than houses that are smaller, have fewer bedrooms, and bathrooms. More people want them.
I'd recommend finding potential Sub2 deals when purchasing, and sell using a Contract For Deed, or a Lease/Option Agreement.
Good luck,
Jeff
I think jeff said it best. You need a good way to sell to protect yourself and SUB2 accomplishes that since you get the deed.
You can sell either contract for deed or maybe a lease with the option to buy. There are several ways to structure profitable sales.
You can have your down payment or option deposit as front end profit, the higher interest rate on the land contract vs what you are paying out or a higher than average rent rate for montly cashflow, and a higher than average exit point from what you bought the property at for your back end profit.
GREAT PLAN!