Subject To deal while in underwriting for personal investment property

[Axel Scaggs]

I recently found a Subject To deal that works for me. However, I'm in the middle of a cash-out refinance of an investment property I already own. My question is, if I was to proceed with the Subject To deal, will this somehow be discovered? Am I better off just waiting until the refinance is complete? I wasn't really sure how it would pop up, but don't see a reason to risk things and complicate my cash-out.

[Don Konipol]

Quote from @Axel Scaggs:

I recently found a Subject To deal that works for me. However, I'm in the middle of a cash-out refinance of an investment property I already own. My question is, if I was to proceed with the Subject To deal, will this somehow be discovered? Am I better off just waiting until the refinance is complete? I wasn't really sure how it would pop up, but don't see a reason to risk things and complicate my cash-out.

My “take” is somewhat different than most posters here.  It really depends on how it’s structured.  
‘Subject to is, by definition,NOT an ASSUMPTION of a debt.  It is exactly what it sounds like, buying a property that has an existing debt on it. For comparison purposes, I hold ownership units in a LLC that owns a retail/service center where there is a mortgage loan that initially represented 50% of value, now about 35%.  The loan is non recourse, so I have no personal liability.  When I list this asset on my PFS, I list the value of my ownership units, not the gross value of the real estate and my “share” of debt. 
I also own shares in REITS.  The REITs are leveraged, but since I am not legally responsible for the debt, I don’t list it as an obligation.

Create an LLC to hold title to the property.  Have yourself own an interest in the LLC, and have another entity you control own an interest and be the manager.  The mortgage is secured by the real estate.  You own an interest in the LLC that owns the real estate.  The debt is not yours, and unless a question is asked in a way that would subject every investor to having to reveal the debt of every entity he was an investor in, you should have no problem.

This is based on my knowledge and experience, I am not an attorney.  Do nothing until you obtain opinion of legal counsel