If you do decide to work with them, you could set up a clear partnership where they’re equity partners and you handle the management and operations.

Quote from @Jonathan Small: @Luke H. what did you decide to do with this deal?

Then the court decides what to do, which is usually sell it.

I would say if you're looking to invest, the first thing I would do is to build your CORE 4 which consists of having a great realtor, contractor, property manager, and attorney in whatever areas you decide to invest in.

Remembering that conversation, I decided to reach out to him.

But you have the option to just pay the monthly payment up to maturity in case something goes wrong or if you decide you can use that money better to just build another property instead of paying it off. 

This negative equity position is one of many reasons that adding ADUs in a single family zone is not typically a good RE investment.OP whatever you decide to invest in, make sure you do thorough and conservative underwriting. good luck You’re right in that the level of underwriting I presented wasn’t institutional level - but for your average person just starting out, institutional grade analysis often makes the thought of investing overwhelming.

Purchase price: $8,000 Cash invested: $20,000 In 2013, I decided to put much of what I had learned from books into action by purchasing a two-bedroom home—not as a traditional investment property, but as a home for my mother.

We decided that we would put our current home up for rent when the new house was complete.

Can you then decide to list and sell the house two months later...yes.