Can I refinance my property which is under lease option agreement

[Lynn Por]

Hi 

If I purchase the property and put the tenant buyer with 2 years rent to own contract ,

Can I refinance the property once I have tenant buyer put in the property , let's say after 6 month ?

I will pay off the loan if the buyer exercise his purchase agreement after 2 years .

Look forward to your advice 

Lynn 

[Jeff Rabinowitz]

@Lynn Por, yes you still have ownership so, theoretically, you can refinance. Make sure that is addressed in your contract. However, practically, if you record a memorandum to protect your potential buyer's option it will show on a title search and it may make it more difficult to find a lender who will loan the funds.

If your tenant buyer is well qualified they could exercise their option at any time. You may be pursuing what ends up being a very short term loan. Make sure the costs associated with that loan are worth it.

It is always best to check with a local attorney to make sure your contracts are worded correctly.