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 The Famous Hot Wing Chicken Girl
Posts: 2964
   
| Long story short, there are 55 acres and a home that belong to a long time family friend of ours. The older couple that originally owned it (current owners parents) were like my grandparents, and I pretty much grew up at the house. My horse has been there for the last 10 years.
The current owner came to my fiance and I and asked if we would like to buy the house and land. Since we are both just starting out and have had major career changes in the last few months, we can't buy it right now. We were going to do owner fiancing, but now the husband doesn't want to do that. He wants us to rent it for a while until we can come to an agreement, and told us to come up with a price for rent.
Question is, how do we determine a price for rent?
The house was built in 1935 and is 1100 square feet. All but 2 of the walls in the home were tore down after the original owner passed, because they decided to use the home to hold family gatherings. So basically, it's an open floor plan now. There is 1 bathroom. Outlets in the home are very limited. Appliances are there but we will have to bring our own washer and dryer.
As for the land, most of it is planted in trees to be harvested in several years, so it's off limits. There is a barn on the land. Here's the thing.. now the husband has decided that if we rent, we are not allowed to put up fencing and he doesn't want us to use the barn for anything but my one horse. We can make hay off of it (like we do every year) and that's about it. They took down the fencing that was up, so my arena has been used as my horse's pasture for a couple of years.
We were (and are) really looking forward to being able to do some major remodeling on the home/barn (and adding pastures) when we can.
My grandmother rents a house next door from the owners and pays around $550 a month for rent. That house was built in the 2000's with and is a 3 bedroom, 2 full bathrooms, all appliances, on 1 acre with a 2 car garage. | |
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Expert
Posts: 1690
| Get an owner finance deal drawn up and own it if at ll possible.
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  Fact Checker
Posts: 16575
Location: Displaced Iowegian | As many times that they have already changed their minds regarding this property, I would certainly make sure that I had an "iron-clad" lease agreement. I would make sure that any improvements made while renting were reimbursed by the owner or I, personally, I would walk away from it.
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 Elite Veteran
Posts: 1092
Location: OK | Depending on where you are, I would say in the $500 range. The house is so old, you can't really pay much rent on that unless it's been very well kept. Also, and very important, that house may not pass inspections, like mold, lead, asbestos. If that's the case, the owner would have a very had time getting anything at all for the house because of that. For that reason, I would think they may not want to mess with listing it, and it would be hard to borrow on as a livable house. Why don't you ask if the rent you pay now could come off the price of the place if you say, agree to buy it within 6 months? This protects you both from getting strung along. By paying down on it like that, when you finance, you can count that $ as a down payment when talking to your banker, along with whatever you will save, and you better save for a down payment and have something to show. Have a bank account, and have $$$ in there. | |
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 Undercover Amish Mafia Member
Posts: 9992
Location: Kansas | NJJ - 2014-01-20 1:02 PM
As many times that they have already changed their minds regarding this property, I would certainly make sure that I had an "iron-clad" lease agreement. I would make sure that any improvements made while renting were reimbursed by the owner or I, personally, I would walk away from it.
agreed. Don't rent or buy from family, if things go sour it becomes a mess and you lose friendship or family. Same thing happened to me.....walk away | |
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The Famous Hot Wing Chicken Girl
Posts: 2964
| barrelhaybroker - 2014-01-20 12:55 PM Get an owner finance deal drawn up and own it if at ll possible.
That was our original plan, but they aren't wanting to do it right now. | |
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The Famous Hot Wing Chicken Girl
Posts: 2964
| jojammer - 2014-01-20 1:05 PM Depending on where you are, I would say in the $500 range. The house is so old, you can't really pay much rent on that unless it's been very well kept. Also, and very important, that house may not pass inspections, like mold, lead, asbestos. If that's the case, the owner would have a very had time getting anything at all for the house because of that. For that reason, I would think they may not want to mess with listing it, and it would be hard to borrow on as a livable house. Why don't you ask if the rent you pay now could come off the price of the place if you say, agree to buy it within 6 months? This protects you both from getting strung along. By paying down on it like that, when you finance, you can count that $ as a down payment when talking to your banker, along with whatever you will save, and you better save for a down payment and have something to show. Have a bank account, and have $$$ in there.
I don't pay anything for rent now. They have been really close to us and never asked for a dime.
The house has been really well taken care of. They pulled up the carpet and redid the hardwood floors. We would personally like to add on to the house and do some remodeling (kitchen, laundry area, bathroom) but it's not unliveable my any means. It's just really open and small. Not really any privacy.
No banks/farm credit will work with us to flat out purchase the land because they claim we want too much land. If was under 10 acres, we wouldn't have a problem. I went back to college and didn't work for over a year (started working again in November) and my fiance had a huge career change, so that hurt us too. The banks still look at what he used to make versus his new pay, so they try and tell us we can't afford the place. Owner fianancing is the way we are trying to go, but they want to wait until after our wedding in July to work that out. We are definitely trying to do the 'rent to own" thing, but they want us to pick the rent payment. That's where I'm completely at a loss.
This is something that I'm trying to fight with every ounce of me for. I have extreme emotional ties to this place and I just can't walk away from it. | |
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 Crazy Doggy Mommy
Posts: 1419
Location: Where Governor's make the liscense plates | I would say 350-400 for rent that may be on the low side, but you havent had to pay rent in the past so they asked what you'd pay | |
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 Star Padded Honey
Posts: 8890
Location: NW MT | I know someone who was renting a house that they wanted to buy but were unable to get the whole down payment together yet due to major move & job changes. The owner gave them an option: rent for lower price OR rent for higher price & the amount over the agreed upon lower rent price would go towards their down payment. | |
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