Bought a very rough 2Br, 1 Ba, 1500sqft Rambler with Unfinished basement July 2021. Vacant for 8 years. Overpaid for it slightly, but this is the definition of fantastic neighborhood, ugly house. Bought it with my partner as a live-in, remodel project with plans in the future of renting it out to college students (Very possible, others already doing it. Couple universities in the area. Definitely a rentable area).

Bought it for $260k. 3% Interest Rate.

Roughly 225k Left on the Mortgage. Currently Paying $1385 for our Mortgage.

50k in work done so far. Upstairs completely remodeled. New Bath. New Kitchen. Open Floor Plan. All new appliances. HVAC Completely Redone, Plumbing Completely Redone. Basement is To-Be Finished. Already Roughed in Frame, Plumb and HVAC. Most work done by myself. (No permits pulled)

Again, Re-iterating this is a fantastic neighborhood. Great Neighbors, Low Crime, Schools, Universities, Parks, Everyone is upgrading their homes. On average most homes are selling 50-100k more than mine. Everything you need. If basement was finished to a full 4br, 2 ba I'm estimating I could rent it out per room $500.

Unfortunately, Partner and I are going through hardships and separation is in the near future. Mortgage is in her name, I'm on the deed. All expense's have been split directly down the middle fairly. I have a few questions about our options and I would greatly appreciate any advice any experts out there could give me.

Option 1: Selling the House. Haven't gotten an actual appraisal, but I'm estimating the cost based on others sold would only be 260-290k

- Are there tax hits that I should expect with selling a house in less than 2 years?

- If we sell the house, Can I use my equity and roll it over separate from her to buy my own house to avoid tax hits?

Option 2: Buying the partner out. We've already agreed that "buying" the other person out would simply mean paying back what was put into the place (25k) and splitting the closing costs.

- Is Buying someone out (When I'm on the deed) simply buying the house over again? Do I need to put a down payment down again?

- If I buy the house again at 225k, Interest Rate goes to 7% I can only imagine that my Mortgage will go up to $1500-$1600. I'm not sure how to calculate this exactly when I'm buying someone else out? Calculators require down payments and other info I'm not sure is applicable?

Any advice would be greatly appreciated. If there are factors that I'm missing please make them known to me. Any recommendations on the best steps moving forward would be a huge help. Let me know if there's any more information I can provide. Thank you.

Saint Paul, Minnesota

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