There are lots of options. 

Once they are stabilized, the tenants have the option to buy their unit and start taking part in the American dream as well and they do homeownership counseling and help them get a fresh start in life. 

I have the option to buy down a point or two as well on the rate.Purchase 275,000Rent 2400 (2800 if garage is rented for storage for $400/mo)Insurance 1200Taxes 3000Maintenance/Capex 20007.5% rate @30 yrs30% Down (82,500)Cashflow $420 (820 if garage can be rented for storage)

It gives him time to prep for a purchase and gives you a committed buyer, plus maybe an option fee upfront and better care of the property.

Quote from @Sam German: Everything I've read says that most mortgages have a due-on-sale clause or something else that prevents Sub-to from being an option.

This gives me flexibility to consider options like a home equity loan or HELOC if needed, but I’d prefer to keep my current financing intact if possible.There’s also major planned development nearby, which could make our lot attractive to developers in the future.Proposed Deal Ideas:Off-Market Purchase: I’m considering approaching him directly for an off-market deal.

Once you own a few properties, leveraging equity or collateral becomes a smart next step to fuel growth.Here are a few ways to approach it:🔁 Options to Use Existing Properties as Collateral:HELOC or Cash-Out Refi (on current properties)Ideal if LTV is low and rates make senseGives you flexible funds for down payments or rehabCross-CollateralizationSome private lenders or portfolio lenders will let you pledge equity from one property as collateral on the nextCan help minimize or eliminate your cash down paymentPrivate LendingMore flexible than banks, and often fasterGreat for short-term bridge financing or flipsLook for lenders who can structure deals creatively (e.g., equity rollovers, deferred payments)DSCR LoansIf buying rentals, DSCR loans don’t use your W-2 income, just the property’s incomeCan pair well with private funds for down paymentIf you’re exploring non-bank lending routes, I’m a private lender and broker—happy to chat about how we can structure something with less out-of-pocket capital.

Is a cash-out refi on my current FHA an option if appraised value supports it, even with FHA loan limits and PMI?

If you inherited the property from a deceased family member selling is one of the best options due to the "stepped-up basis" saving on taxes.

High high level - LLC will typically be an option for DSCR Loans (or bank other types of financing), while conventional will require you to borrow in an individual capacity, but there are pros and cons of each.BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?