Selling Investment Property to Partnership or LLC?

[Bradley Chapman]

I have no idea if this plausible but the goal here for myself is to cash out the equity in my rental while bringing on a partner 50/50. I'm not interested in getting financing for the equity in the rental, but rather cash, thus looking for a cash partner. The kicker here is finding a cash partner to make it at 50/50 ownership. Here are the details:

1. - Home appraisal $450,000
2. - Existing mortgage $225,000

So the question here is can I sell the home for $450K to my partner and myself, with each of us getting a new loan for $225K (through LLC?) or co-signing for a single mortgage. This scenario would pay off the balance of my existing loan and pay out $225K (minus expenses) to me, the seller. I would essentially have the same mortgage amount as it is today, I get my desired cash (without financing), allows partner to finance versus coming up with $225K cash, and in return give up 50% of the house.

Is this a make believe scenario with legal and lender issues, or is it viable? Obviously if I wasn't in the purchase side of the deal, this scenario is simply a home sale. Me being the seller and part purchaser is where I need a reality check from the experts on this forum. Any feedback would be most helpful!