LAS VEGAS (KTNV) — The goal of a new Las Vegas start-up is to make homeownership easier and more affordable in Southern Nevada.
The start-up allows you to rent and build equity in the home you want, and then eventually buy it.
Chris Riestra-Schneider and his husband were looking to buy a townhome in the south part of town earlier this year. However, between high housing prices and a spike in interest rates, Riestra-Schneider says they got priced out.
However, they discovered Roots Homes.
"This is the cookie cutter that my husband and I needed to help us into homeownership," Riestra-Schneider said.
Roots Homes is a Las Vegas based start-up business that buys homes and rents them out to tenants trying to become homeowners.
A minimum of 10% of the rent that is paid goes toward building equity in the home.
Riestra-Schneider says they just signed the minimum required 12-month lease, and are moving into their home next week. He says he plans to use the equity they build towards his down payment.
"We are not forced into buying this home at the end of our lease," Riestra-Schneider said. "We can take our equity and cash it out, we can keep it, move out, and keep it as an investment."
Currently, Riestra-Schneider says they are paying about $2,200 for their 1 bedroom apartment. The rent for this home will be about $2,800. The price includes utilities, HOA fees and property taxes.
"The way that we buy homes today, does not work for a lot of Americans," said cofounder of Roots Homes, Lauren Self.
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Self says she created a flexible form of homeownership which is funded by many investors. She says they raised 2.2 million in pre-seed funding to start their business.
"What we are doing is combining the freedom and flexibility of homeownership with the wealth-building power of homeownership to give our customers the best of both worlds," Self said.
So, what do you need to qualify?
Self says a credit score of over 600 and a monthly income that is 3 times the monthly rent.
Riestra-Schneider says the application process was easy, "within two days we were approved and in contract to buy this house."
