First Rental Property - Sublease Tenants

[Samantha Otero]

Hi BP Family!

I just recently posted my very first rental property up for rent using Zillow Rental Manager. Within 24 hours I was messaged by three corporate leasing companies offering to pay full price as long as I allow them to sublease.

Being that this is my first property, I purchased as a primary home using 20% conventional while I live with my parents. Is renting to a LLC before the 1 year mark of a primary residence legally acceptable? I do not intend on claiming homestead on my taxes. Thanks in advance!

[Adam Martin]

Legally renting to anyone is not acceptable. You bought as a primary residence and got pricing that reflects that and need to honor your contract.  That’s not to say you can’t house hack and rent out a spare room but what you are describing is mortgage fraud.