Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 3 years ago on . Most recent reply

User Stats

20
Posts
17
Votes
Aaron Duthie
  • Investor
  • Frisco, TX
17
Votes |
20
Posts

Unique Subject-To Duplex scenario - legal ramifications?

Aaron Duthie
  • Investor
  • Frisco, TX
Posted

I've scoured the forums and haven't found one that addresses my unique situation below. Would love some input from a legal perspective..

Scenario: I own a full duplex. I live in unit A and rent out unit B. Each unit has its own tax ID. My FHA Mortgage covers the full duplex (unit A and B), including taxes and insurance collected in Escrow monthly.

I am considering selling Unit B Subject To to the current tenant, having them take over the unit B deed along with the whole mortgage (which covers unit A and B + all taxes/insurance).

Question: Beyond the typical Subject To sale concerns, are there any unique restrictions or ramifications I should be aware of if I move forward in this situation? 

Thanks BP Community!

Most Popular Reply

User Stats

20
Posts
17
Votes
Aaron Duthie
  • Investor
  • Frisco, TX
17
Votes |
20
Posts
Aaron Duthie
  • Investor
  • Frisco, TX
Replied

@Matt Devincenzo yes I believe they are two separate lots. Both have their own legal description, property ID, Geo ID...

@Wayne Brooks 1) that's the point I'm going for. They take advantage of the low interest rate on my current loan, acquire their unit at market value (current loan amount), we all avoid agent costs, and I live in my unit now cost-free. Any issues here?

@Nathan Grabau thanks for the considerations

Loading replies...