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If I sell my house to a company and rent it back, after paying rent enough where I sold, I would be the new owner? For example, if I sell my house for $ 70,000 paying $ 1,000 / mo rent, after 70 months I would be the new owner? I intend to sell my house, invest the money that I get, and when the housing market collapses again, I’m going to buy on the dip in the price.

5 Thoughts on Sale of my house with the possibility of re-hire?
  1. Reply
    falsi fiable
    May 20, 2013 at 2:55 am

    No. Why would you think so? Renters will never own the home on which they pay rent.

  2. Reply
    Rob
    May 20, 2013 at 3:52 am

    great way to lose all your money.
    forget it simple.

  3. Reply
    Dan Karas
    May 20, 2013 at 3:58 am

    Additional Details
    “I’m planning on selling my house, investing the money I get, and if the housing market collapses again, I’ll buy it back on the dip in price.”

    How much are the realtor fees and closing costs, where are you going to invest the money, what is the rate of return, at what rate are the gains taxed, how much will it cost for rent after you sell?

    As you can see there is a lot to evaluate before making a decision.

    Right now most markets are in the upward part of the real estate cycle. It may take several years to see the other side of the peak. If it were me, I would rent the house to cover the costs and perhaps gain some positive cash flow and sell when the market is near the top. IE: When houses are selling as fast as they hit the market.

    Not likely,

    If you find a company that will front you 70K for 70 months at 0% interest, I’d like to get a loan from them.

    Money has time value.

    A $ 70,000 loan at a modest 5% interest rate for 70 months, would cost you about $ 1155 dollars per month with a total of about $ 10,850 interest over the 70 month term.

    All of this is assuming someone would buy your home for cash and then sell it back to you on a lease to own deal with no financial incentive or return on cash invested for the seller.

    Good Luck…

  4. Reply
    Lester
    May 20, 2013 at 4:35 am

    No, you will not become owner again in this case.

  5. Reply
    Nahar
    May 20, 2013 at 4:46 am

    If you’re struggling to pay your mortgage, one option you might be thinking about is a sale and rent back scheme run by a private firm. These schemes can also be called buy back or sale and lease back schemes. A sale and rent back scheme run by a private firm allows you to sell your home to that firm and then rent it back from them as a tenant. You would normally sell your home to the firm at a reduced price. A private firm can mean a company, a broker or a private individual.

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