Selling a property and carrying a second mortgage

[Will Bradford]

So I have a condo that is currently rented but it about 3 hours away. I would prefer to sell this property as I dont like the long distance landlording and it is paid in full so I could also free up cash for other investments.

The building is not over 50% owner occupied as the developer is holding a lot of the units as rentals currently. As a consequence this is not an FHA approved building and local realtors have stated that it is difficult to find buyers with the 20% down.

My question is can I sell the property to a buyer and have them get a mortgage for say 80%, carry a second mortgage myself for around 15% and them put 5% down.

These numbers are just for example sake and I am just looking for opinions on the idea in general. Also if you have done this any pointers that you might have.

Any help is appreciated. Will

[Bill Gulley]

No, not usually, the buyer needs 10% down with a piggy backed second from the seller. Most often they are 10/10/80or 10/15/75 loan but not 5/?/? in any combination. With such a condo the lender may want more from the buyer, 15/10/75 or 15/15/70. :)