A New Lease-Purchase on Life

Catherine McAlpine of Rockville, with 8-month-old Nora, says trying to work out a lease-purchase arrangement for their house has been "a live-and-learn situation," in which they don't expect to break even. (By Mara Lee For The Washington Post)

McAlpine said that although he seems serious -- he had a home inspection done -- he hasn't signed the purchase contract that would go into effect within a year. "I'm not as confident as I'd like to be," she said.

Unlike Brown, the couple know they won't break even on the arrangement.

"We bought the house for more than we're selling it for," McAlpine said. Not only that, but the renovation needed was more extensive than they planned. They invested almost $70,000 in new wiring, central air and heating, a new kitchen, new staircases, and new closets.

"For us, it's been a live-and-learn situation," she said.

Frank Jamison sold a house through lease-purchase in 1989. He received a $10,000 deposit and market rent plus $100, with the extra going to the down payment. The buyers were Air Force doctors who had transferred from Hawaii and were waiting to sell a house there. They bought the house four months after moving in.

Jamison, owner of Jamison Real Estate in Poolesville, said he has also helped sellers with lease-purchases and has never had one fall through -- but none of the tenants had damaged credit.

He is considering a lease-purchase again, although he would rather sell now if he can get the same price.

"When you get into one these things, you've got a partner," he said. "They've got complete control of [your house], and you've got a maybe."