According to Wikipedia a lease option (Rent-to-own) is “a type of contract used in residential real estate.

During the term of the lease option, the tenant pays rent to the landlord, and in exchange is permitted to occupy the property. At the end of the contract, the tenant has the option to purchase the property outright. In exchange for this option, the tenant pays extra money to the landlord, in excess of usual market rent.

Excess rent may also be applied towards the eventual purchase of the property, or towards the down payment for a mortgage.

In the event of non-payment, it may be possible to remove the tenants through eviction. If the tenant does not exercise the option to purchase the property at the end of the lease, then the money that the tenant paid for this option was wasted. This might occur if the tenant no longer wishes to purchase the property, or if the tenant wishes to purchase the property but is unable to obtain the financing required to do so.

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 Pros for buying with rent-to-own


 Cons for buying with rent-to-own

According to Wikipedia, Subject-to is a way of purchasing property when there is an existing lien (i.e., Mortgage, Deed of Trust). It is defined as: "Taking title to property with a lien but not agreeing to be personally responsible for the lien. If the holder who forecloses the lien can take the property but may not collect any money from the owner who took 'Subject-to'".

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 Pros for buying Subject-to/taking over payments


 Cons for buying as Subject-to/taking over payments.

Generally it’s better to buy by taking over someone’s payments rather than a rent-to-own; Mainly due to instant ownership.