It really doesn’t matter if it is section 8 or a HUD home, the buyer and seller can typically work out an agreement to purchase the property no matter what the scenario is. The best situation for both parties is to have a buyer come in with cash money. Typically a HUD homes is purchase using cash because it is so deeply discounted and usually needs some minor or major repairs. If this happens the buyer and seller or should we say tenant, may be interested in fixing up the home if the property is able to be repaired at minimal costs.
The repair will typically have to be done by the tenant if they are doing a lease option to buy. The lease transaction will usually require a little bit down payment and also some deposit to insure that the tenant is able to meet obligations. The down payment sometimes is used to recoup the amount of money the buyer had to put down before he/she purchase the property.
The fixing up of the home may range from 30 days and as much as 100 days depending on if it is structural damage.
Some may just go for a typical foreclosure property but for some you may see that all of those properties will typically need some type of repairs or work to bring it back to suitability for the average tenant.
Yes renting out a home for profit is a huge business, and we typicaly find that the rent to own clients usually work the hardest to keep the home in good shape versus someone that will only be there for a short period of time.