Exercise your option and purchase the house.You don't own it yet so you will not be able to refinance.Jeff

Whose agent has the contract, if it's your agent, you don't have an exercised agreement yet and you can cancel but you'll likely still have to compensate your agent.

@Robert Herrera, my instinct would be to tell your "tenant buyer" to either exercise their buy option at $57k - or not.

Once you secure the property you can start to add value and exercise your option to purchase it once you have the financing for it. 

In my opinion, I would treat this as an academic exercise. 

Give them 24 months or so to exercise and buy when they're ready. 

Does this exercise makes sense, if I want to sell the property individually?

Design your option to be exercised after this happens.These same owners are also a great source to ask for seller financing after they see how you manage the property for a couple of years.Happy InvestingDerek Dombeck

The IRA would exercise the option when you sell or refinance, making a potentially nice return.Happy InvestingDerek Dombeck

DR and Lennar basically will only buy ready to build lots.. so I have a few larger projects in the works.. 92 lots and 164 lots.. that they swear ( pinky Swear) they will buy from me when I get them shovel ready.. 7 to 10 million dollar risk and they could say no if they don't like what the market is doing.. the 92 I am going to do if they don't buy it I will build it.. the 164 I have to flip or I will not exercise my option at walk away from about 250k in cash I Have in it presently.. but that's the land game .. big risk big reward.. if the 164 goes right I will make about 4 million on  the same 250k invested.. roll the dice right ???