Owner/Seller Financing Loan

4 Replies

I am just starting out and have come across a decent property that the owner may be willing to do owner financing on. My question is simple. Am I allowed to legally rent this property out? What if the hold the title? First deal so I am at a loss here.

@Justin Somersett   If you purchase with owner financing you would have a written contract transferring the title (aka ownership) to you under the premise that you are paying the seller under the agreed upon terms. The seller would be just like the bank, as long as you make your payments then you own the property.  If you stop paying, then the seller could foreclose on you and get ownership of the property back just like the bank would.  So in this case, you would own the property and thus could rent it out or do whatever you want with it.  Make sure you work with an attorney to draft up a clear purchase agreement that clearly spells out the terms of the sale. 

@Justin Somersett i have done seller financing a few times. it’s the best way to purchase a property in my opinion.

your name will be on title in a true seller finance arrangement. yes, you are good to rent it out!

if you have other questions just let me know!

Originally posted by @Justin Somersett :

I am just starting out and have come across a decent property that the owner may be willing to do owner financing on. My question is simple. Am I allowed to legally rent this property out? What if the hold the title? First deal so I am at a loss here.

If the owner is doing 100% seller financing and he is transferring the title to you, then yes.

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