Posted by bob on January 16, 2001 at 24:01:47:
please help me understand why selling on l/o is any better than just renting…i have heard on this site that if you offer terms, like l/o then you will attract more buyers and turn your property faster but i dont see any real advantages and would have a hard time explaining to someone why they should pay more rent and a higher sales price for a house that they may or may not want in 3 yrs. for example; i purchased a house “subject to” and recorded the deed, cya letter and seller is ok with loan still being in there name for 3 yrs…but seems like if i take option money, that would be the same as most rental properties requireing first and last month rent up front, on time payments and a contract for a yr…l/o would be upfront money and contract for however long but seems like the tennant buyer would just treat the house like a rental…no tax advantage and why would they take better care of it than a rental…they may not even want to buy the house but just need a house to rent (rentals are in short supply in most areas)what are the advantages and would it be better to offer owner financing with a balloon payment(buyer get financing) in 3 yrs…please give me your opinions…they are highly regarded…thanks…bob