If you are looking for a good investment, consider investing in rent to own home. There are many who are not sure whether to continue renting their home or to own a home. You can tap into this market and earn from this type of real estate. In a time of high foreclosure rates and unpredictable jobs markets, these types of properties offer potential homeowners an alternative to the risks of home ownership and the endless financial drain of home rentals. For investors, it's an opportunity with high income potentials.

We are coming off an era when lenders would give money to home buyers who were not qualified to pay the money back. Millions of foreclosures have taken place because people found themselves unable to repay these loans. Whether through job losses or a failure to estimate financial viability, problems with repaying home loans have been widespread for some time now. Rent-to-own homes make a lot of sense from the perspective of tenants and those who would like to own a home, particularly if they have damaged credit histories. It may take a few months or even years to rebuild a ruined credit score. That does not mean that these people are doomed to rent a low-end apartment in the mean time. They may qualify for a decent rent-to-own home, which they can rent until their credit score is sufficient for a home loan that can be used to purchase the home.

Rent-to-own homes provide the option of home ownership if fortunes improve, or to remain a home renter if things continue as they are or get worse. If you are an investor, though, investing in these properties can be advantageous both as a short-term strategy and long-term strategy. In the short-term, you can earn from rent-to-own real estate via monthly rents made to you by your tenants. In the long-term, you make money off the purchase of the property from you by your tenants.

As you have probably guessed, rent-to-own homes are essentially just home rentals that include an option to purchase the home. If you decide to invest in this type of property, the monthly payment that your tenants will make to you will be slightly higher than the average monthly rent that others renting the typical apartment or home pay their landlords. In rent-to-own real estate, you give your tenants the option to purchase the homes they are renting. If they are late in paying the rent, the option contract is voided. Thus, your tenants have motivation to make sure they pay rent on time. And should they default, you need only go through the eviction process, which is much quicker and cheaper than foreclosure. Once the defaulting tenant is evicted from your rent-to-own home, another tenant can take over the rent.