Chicago Duplex with circumstances needs creative help.

[Eric Tan]

I have a friend with some weird circumstances, here's the story:

Person A can't get a loan but has income.

Person B took a loan for Person A for a duplex at 500k

Person A paid back Person B for Down payment and is paying Mortgage on time for 10 years

After the bubble burst, property price dropped to $200k

Person B did a loan modification for Property in 2014.

Loan is now $200k.

Person A now found his calling and is leaving the country.

Person B buys out Person A for $130k cash and continues paying mortgage (since its his anyway)

Loan Modification had a clause upon termination of mortgage a 25% fee is due of difference between initial loan value of $200k and current property value at termination.

Person B wants out but would want to see the $130k back somehow.

The two units are rented out for a total of $2000/month

This is in Chicago 60618.

Comps are $350k~$500k depending on condition

Taxes are about $6k annually.

Water is about $1,500 annually.

Tenants pay other utilities.

How would I help Person B (my friends uncle, Person A is family as well), at the same time get some value out of it?

[John Weidner]

as I read it $200K less the Sale price x 25% = amount due for loan mod.   Good news is 60618 is a hot area right now.  I would take @Brie Schmidtoffer to comp it and you'll get a good estimate