Seller wants to quit claim me half a house for 5k

[Steven N.]

Hi Biggerpockets

I have a seller that purchased a property in 2001 with his girl friend at the time. They broke up in 2005 and she has since stayed in the property.

The original mortgage of 80k was in both their names. Current mortgage is 50k. Deed still in both their names.

The ex gf still lives on the property. She pays all the mortgage, the taxes and insurance. She had the roof redone last year.

The guy just wants to be done with it and refuses to just give her his half.

He is willing to quit claim me his half for 5k. We’ve done a record search and the only things attached to the property are the mortgage and a small lien. Zillow estimate is 197k

I would purchase through a LLC or perhaps create a Florida land trust

I have several possible exit strategies:
1. Let her buy me out
2. Buy her out
3. Sit on it and let her pay down mortgage
4. Force a partition sale but I’m not really looking to force anyone out of their house
5. Sell to another investor

Title company is willing to create a policy on the transaction and run a full title search just to make sure Im paying 5k to someone that actually has rights to the property. Even though Ive already done a search of records I might go this route.

Another issue is due on sale clause. Ive heard purchasing through a florida land trust will not trigger this. Even if I just purchase through an LLC I don't think it being triggered is high.

I know not having control of an asset is not a situation you want to be in but in the ned of the day its only for 5k.

What do you guys think? Would you do this?

[Chris Seveney]

@Steven N.

These would all be questions for an attorney.

To me sounds to good to be true.