If a seller finances me a property can I rent it out OR finance it to a tenant?

If I buy a property via seller financing am I allowed to put that property for rent and collect a monthly rent payment from a tenant?


A seller sells me a property for $5,000 with seller financing. We agree that I will pay : $416.66 per month for 12 months.

Can I rent that property out to a tenant for $750 per month and keep the difference?

Is there any special paperwork that I would need if I then wanted to sell that property to the tenant for $15,000 and finance it to them for $625 per month for 24 months for example.

Basically as I understand you post, if you have a DEED to the property is is yours and you can do pretty much what you want with it.


 As long as you have equitable title recorded you can do anything you wish with your property within the law of course!


Your question would lend itself to making the reader believe you have a mentality of a renter, not a buyer. Seller Financing, bank financing, private lender financing, and any other lender financing are synonymous. You buy, they sell, and seller becomes bank…no difference.

So your answer is, if you buy and a bank provides a mortgage, can you rent? Yes…so you can do same with any other financing including seller financing.

While we are on the topic, lease purchases are merely another method of ‘seller financing.’ The only caveat is you would want to have ‘right to sublet’ in your contract and make certain your contract is recorded in the county property records

Hope this helps.


Yes! there is no issue anywhere in the country with buying a property with seller financing and then renting the property out for a positive cash flow to keep for yourself.

As far as re-selling the property I would recommend that when you buy your property with seller financing you have the note drawn in such a way that it is assumable to the next buyer.
You just simply insert a clause into the note that states; The note is to be assumable.


Fred Myer
Myer Realty