I've done 6 of these with my aunt's financing and have NEVER had anyone suggest her loan was a cashout.For the most part, nobody cared what her loan was as long it was a recorded mortgage and they were refinancing her loan rate and term.The worst part is that I have another house under contract that I won't be able to close on if this refi doesn't go through to free up my aunt's financing.Suggestions?

From a financial stand point it is AWESOME.

In other words, never actually taking ownership.The tricky part is that he is willing to do some of the repairs on the house, but can't do them all.

Does D/E stand for Debt to Equity of 2.5?

The only holding period I am aware of is for related parties where the property cannot be sold for 2 years after the exchange takes place.

I can't in any way stand behind this plan.

Outsourcing Property Management isn't terribly difficult but it will require some due diligence on your part. I

Would they really risk forclosing on a property that is in good standing?

The lender will have to deal with her as a party to the mortgage which can be done through a modification and amendment and the deed through a quit claim.

If the deal wouldn't stand up after doing this then it likely isn't one that should be executed.