Posted by Lynn on November 07, 2000 at 23:53:32:
Most lenders will give him 75% credit for the lease payments that you make to him under the lease-purchase agreement. All he should have to do is give them a copy of the lease.
If he wants to get 100% credit for the payments against his mortgage payment you can do a contract for deed instead of lease-purchase. Win-Win. We have had good luck with this.
Yes, the lease payments are income for tax purposes, but he will also have deductions of interest, depreciation etc. So the net result should be about nil. He should consult with his CPA for his specific situation.