When the title company, escrow agent or attorney prepares the closing documents, they simply factor in the second mortgage payoff amount into the final distribution of funds to the seller.A second mortgage should have little or no effect on a homeowner's ability to sell her home.

It is called transactional funding. 

@Brian CoffmanIf your IRA is involved in the transaction, then it is an IRA owned property.The IRA must obtain a non-recourse loan. 

I know, I should have had one but I knew going into it that it needed a lot of work, whole sale, transactions move very quickly here in FL. 

Selling does have a transactional cost, so that’s one reason I hold, and in this case the low vacancy rate.

@Ramon Vazquez the biggest struggle will be finding new clients who actually want to transact, if you can do that you will do well, if not it will be extremely difficult to make a career out of it.

So if one partner wants to sell it would be just for the properties we own the two of us and would have no effect on the others.  

This is not cost effective for a rental based on the fact that no investor knows how long they will hold. 

Reinvesting it has no effect on the tax.Reinvestment within that activity, such as if you have a rental and if you spend that 15k to repair the house, which is expense, you wash out your income. 

So I have put some thought into this trying to determine what our best path is.I suspect that most areas of San Diego City do not have enough STRs to significantly effect the RE price in those areas.