@Ellis Moyewe really don't know a lot about this situation since there aren't many details in your post... but i don't think this makes any sense for anyone involved here...if it's a flip that's not selling, refinancing may not solve your problem and allow you to pay back the HML in fulland typically a sub to buyer wants a low interest rate... and if you refinance now you won't be getting a low interest rate, you'll just be getting whatever the market offers.and finally.... the vast majority of loans are NOT assumable. 

Hi All,I’m ready to sell an investment property in NoVa to a VA eligible buyer but am not finding a good place to market this.

Sell them outright? 

He asked me to fix it up and sell it, and then he'd let me keep the profit.

Before committing to a flip, ensure you have a clear exit strategy, whether it’s selling quickly or holding for a longer term.

For example if the house is worth 400K, but they are willing to sell it for 375k because they are avoiding having to pay 25k in agent fees, then the bank can consider the equity gap as a down payment.

Warning:If you depreciate a property down near zero and then have to sell your property at a loss during a situation of distress...You could end up giving all the proceeds to the bank AND owe the IRS a big chunk of money for recapture.Long-term tax planning with real estate needs to be coupled with risk management and making sure you don't lose any properties.

I would also verify from a licensed realtor how much rent would be and how much selling it would be..

Also, resale value if you decide to sell down the road.

When you sell a property owned by the IRA - this is not a taxable event.