Either seller financing (if allowed), a private loan (friends / family) or something like that. 

What would lenders look for in both scenarios, and what would the pros and cons of each path moving forward? 

Hi Karim - Some lenders can do as little as 3 months of seasoning.

I know of some options where you can go to non-traditional lenders and use a DSCR (debt service coverage ratio) loans and you may be able to leverage that money and not have to rely on your credit to get approved.      

-Additionally, a lawyer would draft the lease and option contract.Questions:-Will most lenders accept the option fee and rental credit at closing as a seller concession, going towards the buyers down payment? 

Many DSCR lenders have different guidelines as it's a grey area type of loan. 

Most lenders want your housing expense to be less than 40% of your monthly income… sometimes closer to 30%… but usually between the two figures.  

I am turning my private home into my first rental property this summer.

Should you know of any lender please let me know.Thank you! 

DM me and I will send you contacts for; attorneys, lenders, and accountants they have previously used.