The other unit was rented out, and I've been depreciating the portion of the property that is r ented, as well as improvements I've been making so far.

The portion of those people are retail buyers.

I can't think of another solution to help him exit with market rates for his portion of the equity.

Guess what, that portion of equity they just told you to wipe out (to get to 80%) your profit is inside of that not on top of it.

Charge off's are not always 100%, or in other words a small portion of the debt can be charged off.

In the end we do a 70 / 30 profit split the larger portion me.

Windows - Needs all new windows (I wasn't quite sure how to count them, since some are side by side, some are smaller, and some are 3 panel...I counted 25 not including the middle portion of the 3 large pane windows) $6000Foundation - Looked okayLandscaping - Remove trees and shrubs, tear down and remove shed, bring in landscaping rocks, power-wash sidewalks and driveway, remove fence in front and back, put new fence in back, new mailbox, plant new shrubs/flowers for curb appeal. ($3000)Exterior - New exterior and screen doors ($1000) Change exterior light fixtures, new shutters ($400)Interior paint/carpentry - Remove all wood paneling and add/replace sheetrock where necessary.

Your max debt ratio is 45% for conventional with good credt, and your next one will be straight investment property (since you won't be living in it) and will require 20-30% down.They would count income from a part time job only after you've been in the job for a year, some even want two years.Once you have the two years of landlord experience, they'll count the rental income, and as long as your properties have positive Net Cash Flow (NOI minus P&I)--you shouldn't buy any that don't-- then new purchases will actually improve your ratio, as positive NCF goes into the income portion of the DTI ratio at that point.A local bank or credit union may cut you some slack and let you count rental income prior to having the two years of experience.

If you could, you could then find a buyer to take over the mortgage sub2, plus a down payment (which a portion would go to you as your fee).Such a process would work a lot better if you were a licensed agent who convinces some motivated buyers to let you market the house with owner financing.

If so, who is on the title as owner, or does each lender have a portion of ownership, such as the outstanding loan balance owed to them?