Advice Needed: Selling Single Family Occupied by Tenants
I have put in offers on two properties to 1031 exchange with the sale of my occupied single-family property. I have a sale clause in the lease and have asked the tenants to vacate before I list the property. The tenants expressed an interest in buying the property. They have asked if I would be interested in seller financing.
I am open to most any creative ideas that gets everyone what they want. For me, I want the cash out for the down payments on other properties plus rehab and I want a 1031 exchange to defer capital gains.
I would like to hear some recommendations form those far more experienced than I on what options would be best to consider and structure.
If I do seller financing, I would expect a down payment of some realistic amount, but if I do that, can I also refinance to pull out the cash I need for a down payment? What would that mean for a 1031?
If i do a lease option and refinance, I expect a 1031 would be deferred until I sell the property if the tenants exercise the option in say, 2-3 years, and that may be OK, but I may not be desiring to do a new purchase at that specific time and would then risk having to pay capital gains.
What other options might I have? What might work best for both? Right now, the single family rental is 100% paid off with no debt of any kind.
Thanks,
Glenn