Issue is, in these "bad" deals the government comes after the lease option seller for predatory lending practices and the eviction / foreclosure process is a nightmare.

Seller purchased in 2018 for $250K.

@Patrick Pan Why did you have to concede to that demand?

Instead:401(k) loans: They’re low-interest, and you’re paying yourself back.Roth rollovers If you can afford the taxes now, this gives future flexibility.Creative financing: I’ve seen clients leverage partnerships or seller financing to limit retirement fund withdrawals.One thing to consider: real estate markets today are vastly different from a decade ago.. so opportunities may require extra creativity.Have you looked into specific deals yet?

Do they use a servicing company to make the payments directly to the , or do they make payments directly to the seller and hope they pass them on to the lender?

Build-to-Rent (BTR): A Steady Income StreamWith homeownership becoming less attainable for many, build-to-rent properties are in high demand.

The seller could just have an unmotivated broker that doesn’t market the property well, among other reasons. 

Seller (also the agent) purchased it in Jan 2023 for $730,000.

Quote from @Alan Mills: Got an inspection objection back with something I’ve not seen on my other rehab’s (this is a Colorado property):“The seller agrees to have a licensed plumber install external sewer cleanouts per city code and scope the sewer line ensuring its integrity.”This was a full interior/gut rehab and almost everything is brand new.

Seller purchased in Sept 2022 for $274K, leaving room for a "win/win."