Can you sell a property by owner finance with a mortgage?

[Dale E.]

Hi BP community,

Looking for some creative advice.

I acquired a 4b sfh through an online auction about a year ago and completely gutted the home and upgraded mostly everything. Unfortunately, I made several budgeting mistakes along the way and now have less equity than I had hoped for in the property. Property is located in Illinois.

Here is where it stands as of now:

- cash out refi about to be complete. I'll get most all of my remodel money back out and be left with about 20% of my own money in the house

- cash flow will be limited once rented. The house will break even or profit about 100/month free and clear with about a 10% cash on cash return projected

What I am considering / looking for advice:

- can I owner finance a property if I have a mortgage on the unit?

- can I rent to own if I have a mortgage on the unit or is that essentially the same thing as the above question?

- does anyone have any advice on these strategies that I can learn from? My leading thought is to try and offload the property through one of these approaches as it is a quality home that I think I could sell to a current tenant of mine from another rental unit. My goal would be to make a higher return in the next 5-7 years, lock in current market prices, avoid some selling fees, and free up more cash right now for an opportunity that I have an eye on that looks more profitable.

Any advice / suggestions would be greatly appreciated 👍

Thanks!