I pay cash, fix it up, L/O it .But how do I get my cash back out if I have a L/O on it.Does the tenant (so to speak)have to be aware of my refi? If not how do you get the appraiser and surveyer past the tenant?If the tenant does know wont that make them skittish.
What is your definition of L/O?
sell on lease option
But how do I get my cash back out if I have a L/O on it.Does the tenant (so to speak)have to be aware of my refi?
If it is your property it really is of no matter to the tenant. You can do anything you want, as long as you are honoring their option to purchase.
Just tell the tenant that you are refinancing. They will still have the option, as outlined in the L/O agreement to purchase at x time at the previously agreed upon price.
Make sure that the Tenant pays you by check. That way they can use their cancelled checks as “mortgage history” an do a land contract/Lease option refinance when the option period is up.
They will be able to qualify easier for financing with less out of pocket.
I agree with MDhaas.
But if you do want to refi and avoid a full appraisal there are a couple options. You can find a lender who uses AVM’s (automated values) which requires only a drive-by. Or you can take out a heloc, which sometimes only require drive-by or AVM’s as well.
Thank you gentleman fo rthe helpful insight