High Cash Flow and Low Risk by Turning Tenants into Homeowners (Rent-to-Own)

BiggerPockets Real Estate Podcast

Rent-to-own real estate can make you more cash flow, with less risk and fewer expenses, all while helping tenants become homeowners. But if it’s so good, why isn’t everyone doing it? Simply put, most investors have no idea that rent-to-own real estate is even possible! So today, we’re talking to an investor, sharing the ins and outs of this lucrative strategy, and showing you how she scaled from zero to over fifty units, half of which are thanks to this strategy.

Maura McGraw and her husband quickly realized that being active-duty military members wouldn’t lead to the stable family life they dreamed of. They needed a way out while still making enough money to provide. So, they pivoted and began formally studying real estate. After a first deal left them with a $30,000 loss, Maura did what most wouldn’t and got back out there searching for another deal. After dozens of flips and numerous rentals, she stumbled upon rent-to-own investing—a strategy that would fuel her real estate portfolio’s growth.

Imagine getting monthly rent checks without repair and maintenance expenses or insurance costs. That’s what rent-to-own can provide! We’ll talk about analyzing a market, screening tenants/buyers, profit margins, and how YOU can start investing in rent-to-own real estate in your market!

In This Episode We Cover:

How to make more cash flow with less risk by providing rent-to-own options to tenants

The four major ways to make money from a rent-to-own real estate deal

Who makes the perfect buyer/tenant when offering rent-to-own opportunities

What happens when a tenant defaults on the loan, leaving you with the down payment

Screening tenants/buyers before you offer them a rent-to-own opportunity

Why losing money on your first real estate deal does NOT mean you should give up

And So Much More!

Links from the Show

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See Dave at BPCON2024 in Cancun!

What Are Rent-to-Own Homes?

Connect with Maura

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Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1012

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