Why does it seem like everyone has a different opinion on rent to own homes? Some say you end up paying more?

Question

and that you should either 1) just rent or 2) try and buy a home.

But for people that can't afford to buy a home (recent college grads, etc) it seems like renting to own would be better than simply renting.

My reasoning behind this is because you at least have some portion of your rent going toward a down payment. With flat out renting, you don't have that option so you're just throwing you're money away regardless.

Everyone seems to have an opinion and no one seems to know what they are talking about-- what's the deal?

Are soom rent to own houses good, while others bad? How can one differentiate from the two?

How does a landlord make more profit on rent to own instead of flat out renting?

Answer 1

Most of what you say is true. However, when you do a RENT TO OWN deal keep in mind that only a portion of what you pay per month goes towards the downpayment. Therefore the rent will be higher than a regular rental. The seller has to take some profit in case you don't buy. Take in to consideration the wear and tear of the home. You also are responsible for all repairs.

After all this is the home you want to buy. So you must maintain it. See the articles below for more info.

http://blog.myrenttoownhome.com/2006/11/...

http://www.law.utk.edu/Library/teachingl...

http://ezinearticles.com/?Frequently-Ask...

Hope this helps.:)