Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

I’d recommend a consultation with an attorney specializing in these, in addition to an accountant.

Oh, AND I get to add some new additional handcuffs to the mix.Zero sense, it makes absolutely zero sense. 

@Raul Velazquez The 3 things I would recommend besides reading books/audio/sites are:1.

Toxic waste site on Super Fund List  6.

The hard money 10% plus additional thousands in closing costs was too much to swallow. 

Additionally, while rates aren't historically bad right now, they are higher than 4-5 years ago, and they will be even higher for you as an investor than they were as an owner occupant, which is what you were when you bought originally.I get that you are anxious to add to your portfolio, but that could be achieved without touching your first golden goose.Sometimes on BP, the push is to leverage every last spare penny, but that can be a risky game as the markets shift. 

The additions are usually small.Buy focusing on real high value places, you are putting yourself in a narrower guest pool.

For some buyers it would end up being less than a 2.5-3% commish, and for others more.The tricky part for the buyer is it would have to come out of their pocket in addition to the down payment, whereas a commission paid by the seller at closing is included in the purchase price and absorbed into their loan (usually unless paying cash obviously) so the buyer only has to make the down payment out of pocket.

From a tax standpoint, there are additional disclosures to make when selling a business asset for less than fair market value to a related third party.