Have to FIND TENANT & LEASE before closing my DUPLEX?? First Time Buyer

[Account Closed]

I am about to put an offer in for a duplex in Austin and my lender informed me that I would have to have a rental lease agreement showing the arrangement is in place for at least $1700 rent for my tenant (because I am using the projected rental income as part of my loan) BEFORE CLOSING.

(Currently 1 tenant there on a “month to month” lease for $1450 which is too low for me to qualify). 

So when I don’t even own the house, I have to go take pictures of the inside and have a listing up to find someone and vet within 30 days/before closing??

Is that true??? I was hoping to use the vacant unit for Airbnb or mid term rentals instead…

[Allan Smith]

This is almost unheard of to have to place a tenant at a higher rent bedore buying to get approved. You might be able to force it through, but basically the lender is saying you don't qualify.

kicking out a tenant takes weeks if not months, and they probably have a lease in place where you can't kick them out right away. Then to have to show a property that you don't even own, the owner probably won't even let you do that. 

You need to find another way to qualify for a loan.