Selling Primary Res

3 Replies

Hey BP, I'm brand new to RE investing and working a full time job as aero engineer. I have nice home that is tying up most of my buying power/ income. 5 bed, 2.5 bath, 2,900 sf, paid ~$250k. Bought it at market value two years ago. Recently looked into current market value ($252-$268) and am considering a downsize into an investment property (thinking BRRRR after living in it a year) with my wife and 2 kids but wanted to get some opinions on what I consider my options to be with regard to selling current home. The market will not support cash flow on a rental this size so I don't consider that an option. Thoughts and comments would be appreciated.
1) List with agent and accept the fact that after fees and closing I will be down a few thousand but will be better able to bring my real estate goals to fruition by freeing up disposable income from my 9-5.
2) Try a FSBO
3) Rent it with a lease option. With the higher rent is cash flow possible? I have no idea but trying to be creative. I don't have a sense of what rent is possible with this option.
4) Any other creative ideas?

But what of the due-on-sale clause? I have never taken much interest in strategies that open up the possibility of this option being exercised. While I don't understand why a lender would call a note due when the payments continue to come in, I hear it happens. 

Originally posted by @Brock Wiberg :

But what of the due-on-sale clause? I have never taken much interest in strategies that open up the possibility of this option being exercised. While I don't understand why a lender would call a note due when the payments continue to come in, I hear it happens. 

 You could do a Contract for Deed with a wrap around mortgage and have it setup to automatically transfer the title after the terms are met. You would still be on the Title until the terms are met. This option may increase your pool of buyers. You may have to have a lawyer involved that would do this and offer a Trust service that automatically conveys the property when the buyer gets a mortgage on it and pays off your loan.

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