Current property Im selling Value 190 Offer : 185 .... 135 cash down ... 55k I hold a note @ 8%
Good buyer, qualified, just sold another property and cashed out about 140k and needs the debt to buy mine.
Im wondering how to structure and do this. And Im also wondering, hopefully from someone who buys debt, if they can advise me of the best way to do this.
Contract for deed ? Actual Mortgage ?
ALSO .... Im really more interested in just selling this note. The buyer has 700 credit, and im assuming no problems making payments, so If all is in this ballpark, im wondering what I can realistically cash this note out for , as im not that interested in holding the debt.
Great question — and you're running into a very common Texas-specific problem. Texas homestead laws are uniquely restrictive compared to other states, which is why most traditional lenders struggle with this scenario even when the equity is clearly there.
A few options worth exploring for your situation:
1. Texas Home Equity Loan (Section 50(a)(6)) — Texas does allow home equity loans on primary residences, but there are strict rules: max 80% combined LTV, one loan at a time, and the process is slower. Some credit unions handle these better than big banks.
2. Cash-out refinance — In some cases this is cleaner than a HELOC in Texas because it avoids some of the homestead restrictions. Worth running the numbers if your current rate allows it.
3. Asset-based private lending — This is where it gets interesting for duplex owners. Some private lenders look at the property's income potential and value rather than following traditional primary-residence guidelines. The duplex generates (or will generate) rental income from the second unit — that changes how some lenders evaluate the deal.
The fact that you already completed one renovation successfully actually works in your favor — it shows execution ability, which matters a lot to private lenders.
What's the approximate current value of the duplex and how much equity are you looking to pull out? That would help narrow down which route makes the most sense for your numbers.
Feel free to send me a DM here on BiggerPockets if you want to dig into the specifics — happy to point you in the right direction.