Unique situation.

[Thomas P.]

I am about to buy out my aunts 1/2 of a property that she and my mom inherited from their father (my grandfather) The property is owned free and clear.

I have many questions on the way this can be done. The property is a two family w/ a garage that is fully rented. My plan is to keep it rented for 5 years while my income situation improves. I am 24 and just started making a decent salary. The 5 years allows me to save as the rents will cover all expense plus some.

The way I think this will be done is with a cash out refi of 1/2 the appraised value of the home. Now I do not intend to live here immediately so does a refi need to be as an investor? Do refi consider investment or primary? Obvious I would like to get the lowest rate possible and if I can avoid paying higher interest I will. Any ideas how else I can finance this purchase? (My aunt holding the note is out of the question)

How will the deed transfer work? My mom will remain on the deed. If I need a co-signer that is not my mom will this person need to be put on the deed?

I hope I was clear in my explanation of my situation. I appreciate everyone's help here. This forum is fantastic.

Thank you

[Lynn McGeein]

How can you cash-out refi a property you do not own? I think it would be incredibly difficult to cash-out refi 1/2 of an investment property, even if you did own half and it was a refinance, at least from a bank or conventional lender. Your best bet is probably to include your mother in this process, ask your mom to refinance the property to buy her sister out with the agreement that she'll sell half to you, or include you on the loan and the deed and have a separate contract saying she has higher ownership interest until the loan is paid down to a certain amount so she is covered for her half. Looking forward to the experts answers here as we have a large family and weird issues like this crop up from time to time.