Yes...and no.When the LO is first set up, if you record the option agreement (as you should), there are recording costs.When the option agreement is exercised, you are buying the property. 

An LO who isn't doing their full due diligence or who is new might miss that and write you a preapproval letter, but an underwriter wont.

I'm doing some research on LO's to sell a flip I just did.

Talk about this with your lender.Someone tag a good investor friendly LO in New York, ideally upstate.

@Ty Primers This is one of my primary methods of investing (by sub2 - sell on LO).

that kind of thing that's how it gets me down to those numbers and they include 25k for SDC s if its Portland or LO price goes up as SDC are more in the 45 to 60k range.

@Christine Ting you can get her into a credit counseling program as part of the l/o agreement.

I then routinely monitored the onlin property tax records each year to make sure the taxes were paid and lo and behold, I discovered the property had been transferred without our consent.I then contacted the Buyer and told him he has 30 days to pay us off.

A few months later I did some research and lo and behold, 4-5 of these properties were for rent from the same out of state institutional investor. 

@Jay Lo best if you speak to a personal tax consultant There are to many variables to be able to give a accurate answer over chat