Selling Rental Property that is currently in Lease Agreement

[Romil S.]

Hi Everyone,

We bought rental property in Hayward and got into lease agreement with Tenants few months back. Lease is annual and it ends after 9 months. Now we are thinking of Selling that property because we are thinking of upgrading our primary home and want to reduce overall mortgage debt.

I have few questions :

1) If property is rental for < 1 year , does income from that count towards your income for loan approval?

2) If we want to sell this rental property, can we break the lease with 30 day notice and intent to sell ? Is that allowed?

3) Do we need to wait till lease end OR there is a way out?

Thanks!

[Logan Allec]

1. I don't believe so, but I'm not a mortgage professional.  @Chris Mason is a Bay Area lender.

2. Well, what does your lease say?

3. Ditto.

That being said, it's extremely common for people to sell their rentals with leased tenants in-place.