Leasing prior to owning the property

3 Replies

Would it be possible to have a renter sign a lease prior to you purchasing the property that has a condition that states something along the lines of "This lease/contract is void if I am unable to purchase this property by date xx/xx/xxxx"

Aside from that, it would be a normal lease. Will this help when approaching a lender for financing if this is even possible?

It will not help you to obtain financing. Lenders would not count this as income.

Who is the dumb dumb that will lease a house without even seeing it? They must be very desperate or related to you, as a favor.

And no, this will not help you with the loan. Getting a tenant in your first house will help for the second house.

Years ago we purchased VA foreclosures. At the time they had some investor special programs they offered if the house did not sell for say 4-5 months:

VA was offering 100% financing, many of the houses were move in ready with some had missing appliances. We started to show the property BEFORE CLOSING (we had the "master key" to get in with) and we timed the lease signing to the same day as the Closing day. This helped us to start our rental home with zero vacancy and to buy refrigerator for the house, by using the first month rent to pay off the credit card for the fridge stove etc......

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