Mind you I'm not trying to get rich I'm just trying to strike a fair deal and get rid of a house that I just don't want to deal with anymore.Secondly, what type of sale would be best so that we may keep the current BOA mortgage and retain possession of the property in case they fail to pay.

Most HUD retained title companies/attorney's will not want to close the B-C transaction, so you will need a split escrow - a second title/attorney to close the second transaction.

You would think that section 8 would work closely with landlords, but they have no system in place presently would help to manage and retain tenants.

This is the same principal that applies to lenders retaining servicing contracts on mortgages they originate and sell off.

Any thoughts on rehab, & retain, on the rehab end make it ADA compliant.

Alternatively, you could arrange an earn-out whereby you retain 80% - 90% of his portion of the the cash-flow-before-taxes (CFBT) until he has earned out your half of the property {this could be done even if there is an existing mortgage in-place}.Be warned that if you have a mortgage and your names are both on it, the lender (especially a bank) may force the remaining partner to refinance (rather than simply issue a "release" of the other partner from the mortgage).There are others here like Jon Holdman, and @Bill Gulley, who have deep experience and better know the financing options available to you in the U.S.A.Whatever you do going forward, spend a little time with a real estate / partnership attorney and get things in writing.

Typically you would retain 10% in an escrow account from the investor and when the investment is identified you 'Call' on the capital in full balance to be delivered.

I'm taking everything you guys have to say to heart and retaining a lot of information from every one else.

If the house checks out physically, then keeping it seems a fairly way to play appreciation in a strong market, with you retaining the free option to bail out in the black swan scenario.

•You retain the tax benefits, providing tax deductions.