State Specific Question About: KENTUCKY (KY)

Likely you are swimming with sharks. People that are searching for someone who will rent to own a place to them when not already advertised to do so are looking for guppies. Beware. Either you are selling or you are renting. Unless you already are advertising it for rent to own in which case you would already have the answer to your question.

Connie, Know that many prospects are just chatting and don't have a clue.

If you are a newbie or inexperienced with business matters, stick with straight renting.

If you are ready to tackle RTO, it's simple and easy. MUST keep the papers separate.

Lease - same as always, but marked "Resident agrees to provide all maintenance in exchange for the reduced rent shown." and "Special Move In Promotion: no security deposit"

Then have them sign an OPTION TO PURCHASE.

DO NOT refer to the other paper on either paper.

Basically they are buying a piece of paper from you that says you will sell them the house within a certain period of time. I use 3 years.

Few if any every buy.

For more info check out Lou Brown and Ron Legrand.

You can ask your attorney for specific guidance. Mine wouldn't touch a rent-to-own with a ten-foot pole, but I'm in TX. It may be different in KY.

My usual answer is, "I rent houses, but we're not really in the business of selling them."

Rent and own must be kept on different documents, ask for a 20,000 escrow fee as the foreclosure will likely take 18-24 months and you will draw rent from this money to avoid your own foreclosure and pay 2 months of legal fees to recover the deed to your destroyed property.