Originally Posted by
JordanEG6
I currently own a home and a buddy called me up and asked me for a favor: To sign a 6 month lease stating that I am renting his parents house, to which obviously I am not. Is this okay for me to do and will it affect me personally at all in the future?
Backstory:
My buddy owns 2 properties. A primary residence and a rental property. He is aiming to purchase a third property, but because he would own 3 properties total, his debt ratio would go up and would not get approved. The only way his broker said it will get pre-approved is if his parents co-sign on the mortgage, move out of their own residence and move in with buddy into a 'generational household' and 'rent their place out' to provide proof as supplemental income to decrease buddy's debt ratio. For more context, his parents' house, which is the place I'd be 'renting' is paid off.
In reality, I'm just signing it on paper to complete the process. Buddy will have 3 properties, one co-signed by his parents. Parents are not moving out, still going to live in their own place, but on paper, they are live-ins with buddy and I am the 'renter' of the parents place.
Hope this makes sense. I appreciate any feedback. Just wanted to see if I can help him out without anything coming back to me if ever.