Buying a "short" and the previous owner wants to rent it.

[Cheryl C.]

I hope this is the right forum. I have a contract on a short that I am pretty sure will go thru. The current owner wants to be my tenant. Can I lease to him? Is this considered some sort of fraud/collusion? I don't know the guy from Adam. It sure looks like a winner to me. The place is very well maintained. I planned to buy and hold and this would give me zero down-time, no painting, cleaning, carpet or anything else.

Can I do it?

[Jon Holdman]

No. Owner goes or no deal. The lender will require the owner receive no benefit. There are several other reasons not to do this, but this is the simplest reason.