Exit strategies for rental property with equity partners

[Jaclyn P.]

Hi everyone.  We are currently looking to purchase a multifamily property with a few equity partners.  The partnership agreement is to hold the property for 5 years and then sell, and pay back each equity partner their original contribution, plus their percentage of equity.

What I am wondering, is there is a way to keep the property instead of having to sell? If we do a cash out refinance, approx. 25% of the equity would remain in the house. We would be able to pay them back their original contribution, but not all their equity (if any at all, depending on the market). Is it possible for us to "buy" the property from the LLC, and get a new mortgage so we get the full sale price, instead of refinancing? Are there any other options I am overlooking?

Thanks!