A family partner can be pretty awesome, but many people have hurt family relationships because of business, so I'd only recommend it to others if both family members have a high level of integrity, reliability, and drive, and if you have a rock solid relationship.

@Ashley Cao B and C

Moreover, I'm not sure I'd want to rock the boat pre-purchase b/c the rental income is a key metric to you the potential new owner and the lender who may be underwriting the deal based on rental income itself. 

Unless this Seller is living under a rock and does not have access to the Internet and only use a fax machine to communicate with the outside world. 

Option #1 is a hack job / band-aid......... 

You will have to sell at a rock bottom price, but at least you wont be opened up to liability anymore.Good luck.

@Benjamin HurwitzThanks for your response, this deal was funded by a friend........Didn’t want to find rehab and didn’t send second lien, so kinda put me between a rock and a hard place!

For instance:  Little Rock, Arkansas vs Nashville, TN — LR’s populations (painting with broad strokes here) largely lives in Little Rock because they are from LR or from the region.  

Investment Info:

Single-family residence wholesale investment in Bauxite.

Purchase price: $180,000

Sale price: $199,999

3 bedroom
1.67 acres
Fenced in

How did you add value to the deal?...

RE income is classified as passive but owning rental properties is not a rocking chair activity.