Financing Structure: What would you do?

[Brett Gibson]

I have SFR 5/3 that I purchased for $200K (hard money 8%) - I've remodeled it with about $80k (my funds) in improvements. The ARV is between 350-375k.

My initial plan was just to sell it and take the profits. But after evaluating my wealth building goals, I plan on trying to pull my investment out of the house but keep it for a short-term rental (which has been my hold strategy). The home is located in a good neighborhood, and I would consider it a keeper.

I plan to work with a family member that has an excellent W2 income to purchase the house from me at 80% of the appraisal. They would lease back the home with a 30-year lease (I would make the mortgage payments) and have an option to purchase the house at mortgage balance. We would place the house in a trust for privacy, and I would be the trustee with a limited power of attorney (which makes it easier for me to deal with any issues with the loan).

The family member benefits by receiving the depreciation, and I can rent it / control it for cash flow.

What would you do differently, what am I missing, or do you have any other advice?