I have done some zoning research and it is a big hassle especially with them being out of state (looking to move back home) to try and jump through all the legal hoops to do this. 

They consider it fraud and will take action against those who dare to rattle their cage.That being said, IF they approve the tenant and rent you are asking, and the total rent falls within their guidelines and tenant income qualifications, disclosed on the lease you are good to go.BTW, in year #2 of the lease, you can ask for a rent increase, and don't be shy about a raise--at that point, all they can say is "no".

The legitimacy of the contract probably only really matters if you have to go to court/arbitration to enforce it.That said, your title company would be a good place to start in terms of getting a legal review, I'm sure they have a real estate lawyer(s) on staff or retainer depending on the state.

That bubble will burst in a very legally challenging way for people who follow that bad advice.Second, you have to be in a position to handle a Due on Salecall.Third you have to be in a position to make every payment on time even if the property is sitting there vacant.You have to know why you are buying the property and what you are going to do with it to be cash positive without question.There are other things but that is a start.

Disclaimer: Not a tax or legal professional. 

Hi @Tyler Carter - Program guidelines can differ, and though many programs are similar in what they offer, knowing your specific implications in a deal can help pinpoint the right program.

It depends on the guidelines and the deal, but sometimes the pricing on LTRs and STRs is the same. 

Its pretty outrageous if this contract is legal. 

While they may not care much about the neighborhood aesthetics, highlighting the potential for legal issues or fines due to the environmental hazards might get their attention.

It’s worth continuing to shop around or even speaking with a mortgage broker who can connect you with a lender who might be more flexible with these terms.Also, keep in mind that every lender has different guidelines, so it may take a bit of persistence to find one that aligns with your needs.