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Updated almost 9 years ago,
Looking for advice on selling rental property
Bp,
I currently have an investment property that I am looking to sell due to a major life event.
The home is currently worth about $135k and we have a mortgage on the home with a balance of $90k. The current tenants have expressed interest in purchasing the home, however they claim they will not be able to get a bank loan due to outstanding debt- but that they do have a downpayment. The lender we originally got the loan from sold the loan to WF, which is who we make payments to. I don't remember WF notifying us of a due on sale clause, but I certainly remember that the original lender had a due on sale clause in the closing docs we signed. My question is, what is the best way for me to sell this property taking into consideration DOS and negative tax ramifications? I know seller financing is a bad option, but what about lease to own, or just a traditional sale if we put it on the market? Is there a creative finance method that can be used in my situation that will not trigger DOS and also will not leave me with a huge tax bill once ownership is transferred?
Thanks for your help!