UNDER CONTRACT: 2nd home loan- tenant occupied

[Carolina Mejia]

I am under contract on a house that I intend to use as a 2nd home. I plan on renting 3 of the 4 rooms and having one for me so that it pays itself. I am buying it at $165k, 10% down, 7.5% interest rate (yes i know, terrible, i don't have good credit) Anyways the house is OCCUPIED until 04/2024. I will be negative $200-$300 every month until they leave. I can afford it, no issue there. What is the worst that can happen with tenant occupied homes? How do i nicely say i will not renew the lease? My scenarios in my head are that they tear up the house because they are mad and/or they stop paying the rent because they are mad. So i'd be stuck rehabbing or fixing whatever they break or going through eviction. (them leaving on there own would actually be great) I have already requested the estoppel certificate. What other due diligence should i do? i am in GA for reference. Port Wentworth area (outer Savannah)

[Greg H.]

The biggest issue I see is that you will not take possession until April 2024. At this point, this would be a rental property and not a 2nd home which does not meet the guidelines for 2nd home financing. I would address this with your lender asap