Advice Needed: Options to Cash Out My Equity Without Disrupting a Seller Carry Deal

[Pierre Tran]

Hi everyone, first ever post on BiggerPockets!

I'm looking for advice on a situation with an investment property my business partner and I purchased in June 2024 under our joint LLC in Springfield, OR. Here's the breakdown:

• Financing: We used a seller carry deal with 25% down ($100k), a 30-year term (balloon in 10 years), and a 4.68% interest rate. Purchased at 414K. Principal balance currently at 314k
• Property Details: It's essentially a "2-in-1" property, with the main unit rented out for $1,900/month and an attached ADU bringing in an additional $1,200/month. Together, the property nets us roughly $1,400/month after expenses.
• Equity Split: My partner owns 60%, and I own 40%.

I'm exploring ways to take out my equity without disrupting this deal, as I feel this isn't the best financial decision for me right now. Some ideas I've considered:

1. Equity Buyout: Having another investor or my partner buy out my 40% equity.
2. Seller Financing: Selling my equity and offering seller financing to the buyer.
3. Selling the Property: Liquidating the property entirely and splitting the proceeds.

Does anyone have experience with situations like this? Are there other creative options I haven’t considered? Any advice on how to navigate this while keeping the deal intact or potential transfer of partners would be greatly appreciated!

Thank you!