Talking to a fellow investor that has over 150 units locally. He has been the real estate game for 10 years or more. I showed him a way to increase cash flow on single family homes.

We have heard of lease to own. Everyone has also heard of land contract or owner financing. Lets first discuss the land contracts and owner financing. In some cases these will not work because if, like me, have equity mortgages on these properties you can ruin your business. If you put one of these on your mortgaged property then the bank has the right to call the loan and ask for the pay off of the loan.

So now you are thinking what if you own it free and clear. This is great however check your local banking laws. Here in the great state of New York if you do more that 5 owner finance deals a year you may need a banking license. THIS IS VERY EXPENSIVE!!!

Now the lease with the option to buy. We bought a single family and had the sold sign out front for at least three weeks. We then replaced the sign with a RENT TO OWN sign and have averaged 3 calls a day for 2+ weeks. This may not be a lot in some cities, however my city only has 16k people. The rent to own is great because we get more money down, that we don't give back, market rent or a little higher, and better quality tenant.

For more information visit http://www.ryanlreed.com