Buy with a lease/option, fix it up, find a buyer, then exercise your option and resell right away.

My tenant buyer has exercised their option to purchase but the appraisal came in low.

First, let me throw out there that everything I've been saying has been a thought exercise -- I've never partnered on a long-term buy-and-hold and I'm not sure I ever would; I'd much prefer to borrow money at 10-12% than partner given that it's *generally* cheaper to do so for me.

In a "lease option", there is an option to purchase - that option can either be exercised or allowed to lapse; as a result, there is no obligation to make the purchase.

If I am looking to do a sandwich lease option and my tenant buyer is going to exercise the option using conventional bank funding, how is this closing done since I am not the homeowner on record?

But the real exercise is to anticipate taxation impacts.

One exercise will be this.

What if you Lease/Option the house and exercise your option when ready?

Tenants want to exercise their option to buy and your landlord won't follow through with selling.

Often those are set up to hide a sale/transfer in order to avoid a property reassessment and/or the lender exercising the due on sale clause.