How a Rent-To-Own Option Works with Us

Some of our properties are in motion to create a CPR, which means each dwelling will be on its own title (Unit A is usually the main house and unit B would be the ohana; if conditions are right there could even be a unit C).  The rent-to-own option would be for the Unit B Ohana, once it is on it's own title. This process takes about a year to complete.  

On properties we are creating a CPR, we'd like to offer the renters/buyers of the ohana a 100% credit towards the purchase price of the home, once the CPR is granted.  If you are interested in a rent-to-own, it would look like this:

• You rent the unit, paying the advertised rent monthly.  In the lease, we will include the rent-to-own option.
• When the CPR gets approved, the ohana would be appraised as a stand-alone purchase; the appraised amount would then become the purchase price
• The amount of rent for the dwelling would be paid to date would then be credited 100% as part of the down payment/credit towards the purchase price; this credit does not include GET or utilities - the base rent payment
• The buyer would have to qualify for a mortgage or put down funds to purchase the property

For example:  If a unit rents for $3,000 per month as a base rent payment, the CPR process would likely be approved in one year.  12 months of payments at $3,000 per month, equates to $36,000 credit to the buyer at closing.  The purchase price would be determined at the time of the CPR based on the appraised price.  In this example, the $36,000 paid would be credited towards the qualification of the mortgage needed to purchase the ohana. 

If the buyer cannot qualify, the rent payments to date would simply be rent payments as a part of a lease agreement.