The big guys like Perma Seal and US Waterproofing always seem to be more expensive and have longer lead time but you can count on their quality until you get a more independent guy that has flexibility and is typically cheaper.   

@Brian BurkeI bet none of the investors asked the question of “what does the capital stack look like on this deal”Probably was variable rate debt as well…

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

@Bob Asad investors in high-cost areas do this all the time, but I wouldn't.They are betting on both value & rent appreciation, but it is speculation.

There isn't the same level of regulation or scrutiny as with residential lease options, which are subject to specific tenant protections.Flexibility: Lease options can provide flexibility for both parties.

I'm willing to bet dollars to donuts they pay below market rates.

Hi Fred, There are lenders that offer flexible financing solutions for investment property transactions for if / when you decide to pull equity out of the property. 

Your money is working for you in two places at once, you get insurance, and you can repeat the process with very competitive rates and flexibility (particularly for fix/flips).2.

I'll bet she's lying to you so far......and you'll need to carry a pistol when you go meet with the water thieves, people don't like having their water shut off.

Also check You Tube... bet you can find a video showing you how to do it!