However, if you ever want to replace that home, you'll have to move it off his lot.I would consider appraising the vacant land and trying to cut a deal that's fair.

@Jaycee Greene I met with the credit union and waiting on an appraisal but pretty certain I'll access to around $80K @ 8%.

There will be title issues, probate issues, original seller not willing to close issues, appraisal issues, hard money lender issues, family says grandma not in her right mind to sell at 50% discount issues, termite issues, foundation issues, structural issues, can't get insurance issues, I don't have any money to move out issues, or a whole host of other problems.Well...every now and then you find someone that wants to dump one and it is a clean deal and they think because they are not using a realtor, they're saving 6%. 

We used to do all the qualifying as agents, push the loan officers who didn't want to work to get the job done, give comps to the appraisers etc. etc.

For many lenders how long they allow delayed financing, it depends on when they start allowing the new appraised value to be used for cash out refinances.

Now recently appraised at 1.2M.

The debtor and creditor would each hire an appraiser to appraise current value, and of the values vary greatly the court may have another appraisal done.  

@Philip Jones we've helped our clients do over a hundred.As some of the lenders posting have pointed out, the challenges are:1) Property value and corresponding loan size2) Appraisals have much better comparables than 5 years ago, but may still be an issue.3) Property condition can be an issue via the appraisal4) Ownership seasoning - most lenders looking for 6+ months or incredible documentation for cost of improvements made.5) Most DSR lenders require professional property management.Always try a small local bank or credit union, but most will expect you to transfer your business bank accounts over to them. 

If the property is vacant, most lenders will use the rent schedule that the appraiser will prepare as part of the appraisal process.

Will this appraise as a 2/2 or 3/1?