@Brandon StainesOption 1: do nothing you stay on mortgage and good is you still own 50% of house but bad is if she defaults then it hurts your credit tooOption 2: have her buy you out but that would require a new mortgage at a much higher rateNot much else you can do.

With your ARV it looks like you have plenty of room even if the budget is a bit higher than 125K.

Lenders have to pay their loan officers through a loan officer compensation plan along with the "Branch bucket".Lenders have offices where the manager has an override and then a P&L so they have to charge more either through points or higher rates.

More work but higher pay.

Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders.

Some are literally a pad next to someone's house, but the higher rated campsites are those with some natural enjoyment and privacy.  

@Stephen Hood your idea is solid and shows good potential, but here are a few things to consider:Private Lender Terms: Ensure the lender agrees to the 1% origination fee and $2K monthly payments—some may require a higher interest rate or balloon payment at the end.Timeline for Sale: Factor in potential delays with selling your current property or completing renovations on the new one, as these could impact your refinance timeline.Refinance Feasibility: Confirm with lenders that refinancing at $500K is realistic, especially after recent rate increases and appraisal expectations.Exit Plan: Have a backup plan in case the market shifts or repairs take longer than expected, such as extending the private loan or bridging with a HELOC.If you can lock in favorable private loan terms and stay realistic about costs and timelines, this could work well.

However, rates did rise back up from the recent low of 6.08%.The inventory was 38.3% higher than this time last year and is increasing month over month.

Someone came in with a much higher offer, which was surprising since the ARV was $251K, and the house needed significant rehab.

A refinance later will have extra costs if you maintain FHA, but be cheaper on closing costs converting to conventional later, but conventional loans usually have higher rates.