Anyone ever leased a home?

[1_2Many]

My good friend's dad is selling his home. He offered to lease it to me with option to buy. The lease payments are a little high...slightly higher than the mortgage payment would be, but the lease is only 2 years and every cent goes towards down payment of house. If we did buy the house at that point our mortgage would be about $400 less a month.

My delimna is this: My wife and I bought a small condo about 3 and 1/2 years ago and in these financial times we're about $60k upside down. I can't afford to sell it so I was thinking of renting it out while we lease the new house, but when the time comes to buy the new house I'm afraid we will get turned down for a loan with the existing condo loan still active.

The other problem is other condos in area are renting for less than what we pay in mortgage so we would have to pay the difference.

This just seems like a cheaper way to get into a real (and nice) house because I do not need a down payment to move in, but I just can't figure out how to swing it with my condo loan hanging around my neck. Any advice?

[headpunter]

Originally Posted by 1_2Many

My good friend's dad is selling his home. He offered to lease it to me with option to buy. The lease payments are a little high...slightly higher than the mortgage payment would be, but the lease is only 2 years and every cent goes towards down payment of house. If we did buy the house at that point our mortgage would be about $400 less a month.

My delimna is this: My wife and I bought a small condo about 3 and 1/2 years ago and in these financial times we're about $60k upside down. I can't afford to sell it so I was thinking of renting it out while we lease the new house, but when the time comes to buy the new house I'm afraid we will get turned down for a loan with the existing condo loan still active.

The other problem is other condos in area are renting for less than what we pay in mortgage so we would have to pay the difference.

This just seems like a cheaper way to get into a real (and nice) house because I do not need a down payment to move in, but I just can't figure out how to swing it with my condo loan hanging around my neck. Any advice?

i am a state licensing test away from my realitor licensce in washington, so i know a little bit about this.

if you can prove you are renting the condo you would be purchasing a primary residence which would not be hard at all to do. the condo is like a business expense then so I personally wouldnt worry about it. IF you like the house and are willing to pay the lease i would would jump all over it. anything you loose on the condo in paying the difference can be writen off on your income taxes as a business loss.