I think you do a great disservice to your private lender if they don't have a mortgage AND sufficient equity (say 30% of FMV) above the combined loan-to-value of the first and second to protect their position.I'm not an attorney but I strongly suspect that the hard money lender holding a deed has the potential to compromise to a degree the private lender and, if I were the private lender, I'd sure be getting competent legal advice relative to law and precedent in the state wherein the property is located.

I'm probably leaning towards option 1 just because I feel profits will be sucked up by option 2 and option 1 is a good compromise.

If they ask to move in on 2/1/22, then I would be 1 month out of rent.Do many of you compromise and start the lease mid-month like 1/15/22? 

Borrowers may be willing to arrive at compromises that help their credit, such as modifications, if they are not yet at the foreclosure stage."

4) What would you be prepared to compromise on?

Structure of the house cannot be compromised.

Texas seemed like a nice compromise between Syracuse (wife - upstate NY) and Calgary (me - Canada) and we’ve never looked back.

We made a compromise.

When you start making compromises and trying to convince yourself to buy properties that don't meet criteria is when you will get in trouble

You are handycapping your ability to succeed by compromising on the wrong priority.