Hi, I have heard so many times to convert POH to tenant owned. Here are my questions How to convert the tenants to into rent to own program? Currently they pay $500 for renting the home. Lot rent around here is $275 and tenants pay all utilities. So how to determine the value of the mobile home? If i convince them to own their home how much should i charge them every month? How much down payment do i ask them? Please present a scenario with example. I could really use some help!ThanksGowri
So without knowing your market I will just make up some numbers. I would convert these to a lease / option.Say $750 as a charge to enter the option agreement. Then $200 per month for 36 months. At the end of the 3 years, they can purchase the home for $2,400 in cash. If they do not trip the option, the rent might go to $300 per month.
Hey Jim, can I ask why you chose lease options vs rent credits, and what factors you considered in concluding that there is no Safe Act issue.