It’s my understanding that due to the Safe Act and Dodd-Frank, rent to own and lease to own is illegal while the rent credit system may be questionable. Lately, I’ve seen quite a few parks for sale in Florida with rent to own contracts on a few houses. Additionally, I’ve done some research and found certain states have laws on RTO - for example, NY - where according to this link it seems to be legal: https://www.lawny.org/node/299/mobile-home-rent-own-contracts
Have there been any updates to the Safe Act and Dodd Frank which now make RTO/LTO/RC legal? Is it state by state dependent? (It’s my understanding that Federal Laws would supersede state laws). If it is not legal, is there a way to purchase parks that might have RTO contracts in place by converting them to something legal? Or would one need to not purchase these parks? How do people approach the issue?
Lastly, assuming these methods are illegal or ‘grey’ and one would prefer to steer away from these methods, if you have POHs that you need/want to sell off and don’t want to become a licensed mortgage loan originator, is the only option getting your tenants third party financing? (I am making the assumption tenants will not have enough cash to purchase the home outright). I’m sure it’s market dependent, but how realistic is it to believe many tenants can qualify for third party financing and is there a way to determine this on a market by market basis?