Partnership BRRR problem

[Nick Dunbar]

How do you BRRR refinance a property bought in your name and transferred to a 50/50 equity partnership (no due on sale clause. Transfer was approved in writing)?

We didn’t do this the ideal way. Purchased conventional about 2 years ago. It was our test run into investing in real estate. Bad news, it went really well. Now we want to really ramp it up.

Townhome Property details:

Bought for 90k

Rehab 11,960

~70K left on loan.

Appraised this month for 135k.

Max loan ~102.

Cash flow after refi 187 a month after all accruals

So, the problem. Fannie Mae said you cannot take cash our due to the chain of title previously being held with an LLP. I asked if it was an LLC would it work. The Answer was only if it was a single member LLC. How can I every take equity out if this is the scenario? Are their other options I'm missing because (you know) you don't know what you don't know?