lease/rent to own house
Ive read a little about lease or rent with option to purchase/own. I am thinking about doing this with my current home as we will be in a newly custom built in about 60 days. We will have a RE atty draw up all the papers.
We have a couple looking to lease and later purchase. Some of their family live in this neighborhod which is how the idea came to be. One spouse has not been in the job for a year yet but has decient credit and the other has spotty credit.
In a lease to own, I read that two contracts are good. One for the renting and the other for the option to buy at a later date. In these agreements, how is it best to deal with systems repairs and the renter wanting to make improvements to the yard, deck and possible other items?
How are taxes and insurance taken care of? We currently still owe for the house however we have 80% of the house value in equity in the house.
Our thought is to have the new house mortgage with a second or HELOC on it to cover a large down payment. Once our old house sells, the lump profit of selling will pay off the second or HELOC and whats left will be a lower monthly payment than what we would otherwise have. This would help to allow us to then schedule special trips and fun things with the kids at times, and at other times allow for extra to be paid on priciple.
Thoughts, ideas and advice?