Selling homes to tenants

[Brian Lubeck]

Good morning.  I have a question about selling homes to tenants.  We have a loan on the property as a whole, but recently I have sold a few homes to tenants and only charging them lot rent.  How will my bank view that?  Will they care because those homes were collateral?  Wanted to ask the community first before asking my banker.  Thank you in advance for any guidance.  

[Rachel H.]

@Brian Lubeck If you're selling the homes to tenants and only charging lot rent, it should be separated from the sale of the homes themselves. I would not bundle them together as a payment for the home which can be confusing. 

Yes, this may raise a red flag with your bank since the homes were collateral for the loan. Just something to be aware of. 

Hope that helps!