Typically we see a non refundable deposit and extension fees to keep the property tied up.

Hi Lue, You meet the requirement, you would be what's called a non-occupant co-borrower.

This will allow for you to pursue legal action "eviction" if ever needed for non payment or negligence as a tenant. if you rent out the basement separately but it is not a legal unit, the court will not allow you to pursue an eviction.

@Kevin S.Great question legacy planning is hard enough with family dynamics, add in illiquid and non divisible property for another layer of fun!  

There was a concept query of public (2021?)

Id say its very similar to working with non investor clients aside from a little extra work and baseline knowledge of investing / rehabs. 

Some states laws say for non-owner occupied property, the vendor doesn't need a written contract.That said, in the absence of a written agreement if the lien is to be based upon the reasonable value of services provided, that $9k estimate seems like a good starting point.

I thought about buying a non developed lot in cash, subdividing it, clean it (take out trees and bushes), get permits, and start building 1 property sell it and then build the second one...The problem is that I am afraid of going this route because of messing with sewer, water, electricity...

The “worst” appraisals I’ve seen (on a consistent basis) as to over valuation are on non operational health care facilities.  

Do you know if they are leaving that type of market or is the carrier non-renewing for another reason?