Buy and Hold - Cash Purchase then Cash-out Refinance

[Nicholas Kurowski]

Good Afternoon BP,

I have a potential deal coming up to purchase a buy and hold duplex directly next door to my current rental property. I will live in one unit and rent the other. I don't have the down payment money to be able to get a mortgage on the property myself. However, my father has offered to finance a cash offer on the duplex. He will receive $5,000 as his fee for the financing. We would both be on the deed for the property and I would then do a cash-out refinance on the property to pay him back his initial investment plus his $5,000. (This deal is all dependent on purchase price). I will be able to do 89% LTV on the cash-out refi.

My question is regarding removing my father from the deed after I purchase the home. He does not want to remain on the deed. I have no experience with this and was looking for some insight. The property is located in Philadelphia.

Any advice would be greatly appreciated.  Thanks everyone.