@Josh NaborsHi Josh,I am working on a scenario just like yours.There are many ways to tackle the above.My client with a similar scenario also wants to receive property from her dad with out any money from their pocket.So what we will end up doing is we'll take title to the property subject to the current note.Then after 1 day from taking title we will apply for a rate term refinance (fannie mae only requires 1 + day on title for rate/term refi).As long as our LTV is 75% or lower we can do this refinance (along with acceptable income & reserves & credit score) since this is an investment property refinance.The difference from the value that the property was gifted at and the cost basis that was left in the property is considered the "gift," so there are certain tax ramifications that you might want to talk to your accountant about with your dad.I've checked with my underwriter and we're about to review this file soon.The above is really just a creative strategy of Sub2 and a conventional strategy of a regular Rate/term refinance so nothing really complex.Good luck on yours.

Fannie Mae asking 185 for the property.

The reason I changed from LLC's to a corp, or Sub S corp is to resolve the Fannie Mae 10 limit / Freddie Mac 6 Limit,  rule of financed properties.

A:    Depends if they are Fannie Mae loans. 

Its not big or small bank, its Fannie Mae guidelines. 

The Fannie Mae guidelines just say "mortgaged property".

Do the rehab and then either sell it or refinance it in to a Fannie Mae cash out refinance at 75% of the new appraised value.

Fannie Mae/Freddie Mac do not allow income reported on Schedule E from property you do not own to be counted as income. 

Google "Fannie Mae Eligibility matrix" and you'll see the chart if you scroll down.Now, here's the hard part. 

The rules is that you can't get a new Fannie Mae or Freddie Mac loan if you have four or more mortgaged properties.