Friend willing to get creative to sell me his Lake house. Ideas?

[Brandon Redfern]

I have a friend who owns a 1100 sqft cabin on a prominent lake. He's building on the lake so he doesn't need this anymore. He owes $200k and it was appraised at $300k a few years ago. He's willing to sell it to me for $259k. I plan on airbnb'ing it and using it for my family when it's not being rented. I think I could easily break even every year by doing that which really is just my goal. I have 3 rentals with mortgages in my name that all cash flow $200-$400 month each. I have 3 more with a partner in an LLC where 2 of the mortgages are in my name and we are cash flowing $400-$600 each house. I make about $300k from my job but am not sure a bank would loan me on another property and I'd rather not put down 20% as that would leave me with very little reserves for all the properties and my own emergency fund. My buddy is willing to get creative. I'm not sure he can owner finance since he has a mortgage but could I form an LLC and have him quick claim deed it to my LLC and just pay him the difference and essentially pay him monthly so he can pay the mortgage? OR is it legal for him to sell it to me for say $280k and then give me back the $21k to refill my reserves? What other creative options would there be?

[Jay Hinrichs]

you could do a wrap.... with both your eyes wide open... if for some reason the underlying got called between the two of you ... you would need to cash it out or refi or sell.

chances are it won't get called.. but the mortgage stays on your friends credit .. so he may not like that.