I have extended family that would rent out the main floor of the house.

I typically give the tenant buyer a two year option and sometimes the option to extend their option for a $1,000. 

So of course he goes into contract on a place yielding 46.97% (He has a self-employed fiance and another $2k/month, neither of which I can count as qualifying income, so I don't feel like he's over-extending himself).

OK, BP-Landia, to pass the time waiting to hear back from my lawyers, allow me to share the following tale, edited here for brevity (believe it or not):Duplex in Houston TX, listed at $X68k; after extended negotiations, which purportedly included a new tenant on a year lease at $1400/month and promised repairs, went under contract for $X56.5k w 3d party financing.

We have a good lawyer friend of his acting for us..One of the ideas we had was to go back to the seller and ask if we can submit another contract on the back end of this one, so we have it tied up for a longer period, but that comes down to the seller and hes already extended it once for us..Any help or advice would be greatly appreciated!!

Leverage can work against you risk wise if you over extend, which is why staying cash flow positive is key. 

The fiduciary duty morphs and becomes extended so long as that money is sitting in escrow. 

A smart lender would say that the Loan was extended on the credit of the individual and he remains the sole human being with which the lender is dealing.

Hello Joy,                  I wanted to extend a big welcome to you for joining and becoming a member to the Bigger Pockets community.

Trying to 'build it' may extend their time renting out for years and years while they are in the middle.