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Updated almost 3 years ago on . Most recent reply

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7
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Michael Austin
  • Rental Property Investor
  • Richmond Virginia
0
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7
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Any Advice? -Divorce decree requires 50/50 split of equity

Michael Austin
  • Rental Property Investor
  • Richmond Virginia
Posted

Hoping for some advice about what to do with the home now that the divorce is final.  

Background:  The home was purchased in 2015 for $206k.  I am only one on the deed, but as part of the divorce decree there is to be a 50/50 split of the home if sold, or each has an option to buy the other out.  Currently principle balance is $177K ,with a Zestimate of $331K that I feel is high.  IMO the realistic value is about $315K as is retail.  New roof 2019, new HVAC 2020, but it needs carpet and paint and some TLC in a few other areas.  

I'm finding it hard to look at this objectively. I don't want to sell the house, for sentimental reasons, and I don't know how i can afford to buy her out the way home prices are rising. She is basically renting the home back from me at breakeven, but that is well below area rents. I was thinking that a DSCR loan, based on the rents in that area, would be an option to buy her out. But since I technically already own the home in my personal name, I would have to do that in my LLC and I honestly don't know if that is an option legally. Lastly, my kids still live there with her. They are old enough to move if necessary, but I would prefer to avoid forcing them to do so prematurely. Lots to consider... afraid i'm too close to the situation to see things clearly

  • Michael Austin
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