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Pay for Rent schedule - What does this mean?
Hello, I'm looking at purchasing an investment property home and the lender indicated that they need to structure the loan with me renting out the property. Since I don’t own the home until after I close on it, I would need to pay for a rent schedule for appraiser to calculate the average rental being charged for the area in which I'm purchasing. This will help offset the townhomes new mortgage payment which will help me qualify for the loan.
I'm not sure what this means and if this is common for a lender to do for an investment property.
Has anyone experienced this? What are the pros/cons?
Appreciate any insight.IL