Should I sell w/ a Wraparound Mortgage?

[Doug Vigliano]

Hello BP Community, 

I wanted to get some quick advice to make the most of my primary residence home sale next summer.  We are moving to Austin, TX and need to sell our house here in Orlando, FL.  

Here are the basics, house is worth $340k, owe $270k w/ a conventional loan $1800/month PITI

Aside from a traditional sale, we were considering owner financing or selling via a "wrap mortgage"

Any thoughts/input would be appreciated! 

[Rick Pozos]

If you have lived in the home at least 2 years, all profit is tax free. Roll that money into a rental property or two in Texas. You would use a wrap strategy if the market was not moving or there were some issues with the house that the new buyer could not get financing. If the house is financable, sell it and get your cash.