Rent or Rent-to-Own?

[Millions]

Hi All,

I bought my first condo last April but didnt really take into account that 2 bedrooms might not fetch me the rent I need to keep it going.

The condo is in Kilarney. It`s 2 bed, 1 bath, underground heated parking, secured building. Its very nice with laminate throughout.

Does anyone know what I can expect in Rent? I locked into a 25 year mortgage so the monthly payments are quite a bit as of now.

I have also heard of a Rent-to-own situation. I do like the idea although I would prefer to rent and cash in the equity in couple years when the c-train is built.

Does anyone have an advice? And does anyone know exactly how a Rent-To-own would work?

Thanks so much!

Matt Bailey
[email protected]
(403) 681-7825

 

[BobHudson]

QUOTE (Millions @ Jan 4 2008, 11:56 PM) Hi All,

I bought my first condo last April but didnt really take into account that 2 bedrooms might not fetch me the rent I need to keep it going.

The condo is in Kilarney. It`s 2 bed, 1 bath, underground heated parking, secured building. Its very nice with laminate throughout.

Does anyone know what I can expect in Rent? I locked into a 25 year mortgage so the monthly payments are quite a bit as of now.

I have also heard of a Rent-to-own situation. I do like the idea although I would prefer to rent and cash in the equity in couple years when the c-train is built.

Does anyone have an advice? And does anyone know exactly how a Rent-To-own would work?

Thanks so much!

Matt Bailey
[email protected]
(403) 681-7825

Hi, Matt.

I have a blog that describes how we do rent to owns. You can search it or scroll it at http://lease2ownbob.blogspot.com/

But I am in Ontario where we are looking at appreciation differently than red hot Alberta. In an interesting discussion one evening with Russell Westcott, Saskatchewan`s most famous real estate investor who invests in Edmonton, Russell said to me that he would never set a pre-determined price on a lease option. He would prefer to agree on the target price as "the average of three appraisals done at the future date". What he says makes more sense in a hot market.

Drop me an e-mail at [email protected] if there are any specific lease option questions you have after having a look at the FAQs in the blog.

 

[VaughnandTwila]

QUOTE (Millions @ Jan 4 2008, 09:56 PM) Hi All,

I bought my first condo last April but didnt really take into account that 2 bedrooms might not fetch me the rent I need to keep it going.

The condo is in Kilarney. It`s 2 bed, 1 bath, underground heated parking, secured building. Its very nice with laminate throughout.

Does anyone know what I can expect in Rent? I locked into a 25 year mortgage so the monthly payments are quite a bit as of now.

I have also heard of a Rent-to-own situation. I do like the idea although I would prefer to rent and cash in the equity in couple years when the c-train is built.

Does anyone have an advice? And does anyone know exactly how a Rent-To-own would work?

Thanks so much!

Matt Bailey
[email protected]
(403) 681-7825

Right now I have a 40 year open mortgage at prime minus 0.50%. It might be worth your while to pay the penalty to get out of the 25 year closed term and go with an open mortgage and a 40 year amortization. This would lower your payments and make the investment easier to cash flow.

----Vaughn----