If you're an out of state landlord, the same can happen with mortgages. 

For the duration of the lease-option the property stays in the sellers name, so it should not trigger a "due on sale" for the mortgage, until the option is exercised. 

(unless you can get a regular loan, and then just do that.From then on, you pay insurance, mortgage, repairs, maintenance taxes, and everything else that relates tot he house.  

This is not the same process as a SFR purchase, where the buyer obtains a letter of qualification from a dubious mortgage broker; this is a very intensive evaluation.That being said, nothing is to stop any interested party, qualified or not from making an unsolicited offer.  

Comparable properties range between $260K - $280K.Why I want to buy:Save on rent as the mortgage will be cheaperFix the house and flip it while living in, holding it for 1-2 years for appreciationI would like to offer a low price on the property (reduce 25K+ off retail) since I plan to buy it as is, and upgrade everything in it since everything is from original 1990's construction. 

Hi All,I was hoping I could find out what the current rules are on this from any mortgage lenders or brokers: If I buy a house with lended private money when can I refinance into a lower interest loan and cash out the private money folks?

So far, I think I've run across these recommendations on who should do doc prep:* the title company * a licensed broker * you ( the lender )...grab a DOT/Mortgage and PNote online!

My plan is to purchase a few turnkey properties, use the cash flow to pay down their respective mortgages, then 1031 exchange them into a MFH complex.

So if after 2 months the house gets turned into a rental property did you commit mortgage fraud? 

The owner has paid so far $70,000 on his mortgage(bought the property for $105,000) but due to personal reason he hasn't been able to make last few months mortgages, in total he is $5,000 behind.