Orlando, FL · Member since 2019 · 24 posts · 44 votes
Hello,
I'm looking for a creative solution for this. I have a rental property next to a college campus. I rent out the rooms to individuals. There's a total of 3 individual leases and each are on different lease dates. This makes it easier for anyone to move-in/out. Every lender that I've spoken to cannot include these leases for underwriting, even though it's included on my tax returns.
They are looking for 1 lease for all 3 individuals. I'm having a hard time creating such lease due to the different terms of each and it's hard to find someone be responsible for all 2 individuals as that's one of the benefits the students look for. I also run into the issue of in case I need to evict anyone from the lease, how would I only evict one tenant when 2 other ones are on the lease?
Am I able to create an agreement with a personal LLC for this home only that collects the rent and have an agreement between the LLC and I? I'm not sure... just throwing out some ideas.
An llc isn't a solution. Yours is a process problem, not an ownership problem. As others have learned, an llc deed flip creates a whole lot of warts and hair. I'm only surmising here, but your 'leases' look more like AirBnB to an underwriter than a rental agreement. Perhaps someone else can show up with how they did it without a lot maybe's and guessing.
This isn't something I would ever do or recommend doing, but IF you gave each college student $50, I bet they would all sign a new lease if you promised you wouldn't enforce it.
I wouldn't recommend it because its probably insurance fraud. I wouldn't do it either, but its probably the simplest solution.
Fraud in its simplest form is deliberate misrepresentation and deception: One party deceives another by misrepresenting information, facts, and figures.
The only real way to do this is either find 3 students to lease together or lease to an entity that leases to the students. That works when you lease to say a sorority or fraternity but I can't think of any other organization that can sign a lease.
I had a conversation with a lender when trying to prequalify and he said I could count roommate income if I had a years proof of the roommate paying me.
I’m in the process of purchasing a 2 family home where 1 unit is set up as 2br-1kitchen-1bath over 2br-kitchen-1bath. I find its a good setup for a rooming situation. As I’m researching I’m seeing rooming houses have vacancy challenges and may also be difficult with lenders. However, it greatly increases cash flow.
I had a conversation with a lender when trying to prequalify and he said I could count roommate income if I had a years proof of the roommate paying me.
I’m in the process of purchasing a 2 family home where 1 unit is set up as 2br-1kitchen-1bath over 2br-kitchen-1bath. I find its a good setup for a rooming situation. As I’m researching I’m seeing rooming houses have vacancy challenges and may also be difficult with lenders. However, it greatly increases cash flow.