Possible lead for me

[Panetrick Gooden]

I found a home where two friends came into a deal and the tenant has basically a rent to own agreement with the owner. The tenant wants to own the home and buy from the seller he just needs a co signer on the loan. The current tenant has aspirations of owning this single family home and renting out the rooms. I am asking to see if I should join forces with the tenant and take on the mortgage and figure a way to rent out the rooms. This could be my first potential property but I just want to know does this seem worth the hassle

[Chris Mason]

Question: What is the sound of someone that trashed their DTI already, and will have a really hard time getting vanilla Fannie type loans moving forward?

Answer: "So I cosigned this mortgage..."

There are exceptions, but that is the most common outcome.

In this case, it's even worse. He needs a cosigner b/c he can't show an ability to make the monthly payments. The bank getting you on the hook for the full mortgage payment solves that problem for the tenant, and the bank, but now you have a new problem. There is no "here is my half of the mortgage payment" in these scenarios, you (& your credit etc) are each 100% liable for 100% of the payment.