would you enter into a RE arrangement with your boss?
My husband's boss has brought up the idea of helping us to get into a house of our own. He can easily afford to pay cash outright (probably on a cosmetic fixer) and do a lease-to-own for us.
He wants to charge us the same rent we pay now. I'm not sure yet what percentage of that would be credited to our down. In any case it means he'll probably have to hold the note himself when the lease is up and we buy the house, because I don't think lenders will accept rent paid as a down payment unless he's charged us more than market rent.
We would insist on contracts with all the i's dotted and t's crossed to protect everyone involved. We would engage our own RE agent to look over the contract. We would choose the HI, too. Since he's talking fixer houses, we've discussed exactly what kinds of repairs we would be willing to take on, financially and energy-wise, and would have that specified in the contract.
It may be that in exchange for this we would do something like manage another property he would buy nearby and rent out, or do minor repair work on another fixer he buys to sell. We don't have any experience managing rentals or repairing houses to resell, so that's something we need to investigate and discuss.
The boss lives in another country (he's an American citizen and we would be buying a house in the US) so there would be very little dealing directly with him -- I understand the possibility to feel as if he were intruding on our home life as well as running my husband's work life, but I don't think that would be an issue.
Right now we live in a rental house that's too small for us, with incompetent property management and a cheap owner, and it's slowly sucking our souls out. We're subject to the inherent risks of renting -- we rent month-to-month and in our state that means our rental can be terminated for any reason or no reason with only 20 days notice, and even leases can simply not be renewed. Our credit isn't good enough for a loan, but the bad credit is old and we make rent on time every month. We can pay the monthly rent and still have a financial cushion. We've rented this house for 8 years, so we're stable and reliable. Because of our credit, though, we'd have trouble getting another rental.
I'm a cynical person at heart and my inclination is to look at the worst thing that could happen here. I'm having trouble finding anything that couldn't already happen with the house we're renting, or another rental. Does anyone with more experience than me have any insights to share?