Landlord Question and Answer Forum

Hi all, I wonder if anyone can help me understand (OK simplify) the rent to buy process. My tenant has been in a year and asked if I would sell to them. We make absolutely no money on this house and actually pay $6000 a year as their rent doesn't cover the mortgage. This is without any issues that arise too. There is already a drop of $70,000 from what we paid and its possible worth but guess that shouldn't factor in as I need to work out what's left to pay and what we have put in primarily. Does anyone know my next move? I guess we need to agree a price? The tenant just signed a new 1 year lease but has also complained that the driveway needs relaying and that the deck is falling to pieces so guess this is a ploy to start negotiations on selling price. I understand that they pay the rent for a given time, plus extra that we hold as a deposit/down payment so assume I can get that contract drawn up by a real estate attorney who can also work on closing once the agreed upon timeframe ends (is this better than a realtor or should I just go with one and pay the 5%? Really appreciate any advice, especially someone who has successfully done this, as need to start somewhere, I have to remember that if they want 3-5 years then I still have to pay extra for that mortgage payment so need to factor that and closing costs into my final agreed price but hear that any repairs from the agreed day forward are the potential buyers concern so I guess they should do an inspection themselves before we agree a price.

Oops sorry property is in NJ

Posted by chris b, CA on Wednesday, June 6, 2018