Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
Purchasing subject to allows you to buy a property using the existing loan. The actual purchase transaction is the same as if you were paying cash or getting a new loan. You can do anything you want with it after you buy, including renting it to the former owner.
On any subject to purchase you have the risk of the lender calling the loan. You need to be prepared to pay off that loan if that happens, such as by selling or refinancing.
Also be aware that sale/leaseback deals can be dangerous if there is any agreement to let the seller buy the property back. Those can be viewed as loans, not purchase. If you end up having to evict, a judge can decide the "tenant" is really the owner and you made a loan, not a purchase. So, you will have to foreclose, not evict. And, depending on the terms, a judge might decide its a usurious loan and void the whole deal. Avoid any sort of repurchase agreement.