Why does "rent to own" have a low listing price?

Why do “rent to own” have low listing prices? And how do you ultimately end up owing these?
For example

http://www.zillow.com/homedetails/95050-Location-Los-Padres-Blvd-Santa-Clara-CA-95050/2096362700_zpid/

I have never seen rent to own in Bay Area. Always thought it’s something specific to the fly over states.

Sounds like a scam to get $297 from you…something smells bad about this deal

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Thanks, for the quick reply, this was a second listing that I came across. I could not find the link to the first listing, that was in Los Gatos. Sure, seems , too good to be true…

Right. Rent to own is most certainly a scam. Many people on the bigger pocket forum promote it, and I always think it’s a scam. If you slip up just once like paying rent one day late or something they can legally confiscate the own part of your rent and kick you out. So the net result is you just pay higher rent like a sucker.

This house was right down the street from me. When it was first listed in 2015 I think it was, it sat for a very long time. Then it was up for sale again, and someone moved in and they did some work.
If it’s on the market again it’s because they overpaid for it back then and are trying to find a way to recoup.
I haven’t done any research but I’ll bet it’s underwater or just even.