Even better, I might be able to snag it well under market value since it's an estate sale that's been sitting on the market for nearly 200 days.Here’s the challenge: while I could afford to purchase the property under market value, I’d be stretching my budget thin to cover the mortgage during the period I’d be remodeling the basement to make it rentable.

This is a current sale going on in my area.

For those who’ve structured wraparound mortgages, what strategies have you used to avoid triggering the due-on-sale clause?

This way in case of “default” we don’t need to go thru foreclosure, or bankruptcy litigation since we already own the property on a sale/leaseback/option arrangement.  

Purchase price: $75,000 Cash invested: $10,000 Sale price: $120,000 This is a 2 bedroom 1 bathroom single family detached house is South Georgia.

Moreover, I would recommend prioritizing a W2 position over 1099 self-employment/sales for two reasons.

What is the current market valuation of the property based on comparable sales (defined as similar properties, within a 1-mile radius, within the last 30 to 180 days, that are within 10% of total square footage)? 

However, electing partnership or corporate taxation could be seen as a sale, causing unintended tax consequences.

(Land and construction cost, expected sale price, etc.)My last development in Chicago looked like this:Land = $300kConstruction Cost $650kHolding Cost/Closing Cost/etc. $50kProfit roughly $100kThat project was in Bucktown on the nw side of Chicago.

But tax wise just here to note if you buy a 4 unit as a primary when you go to sell (if you meet the requirements) only 1/4 of the gain could be excluded under the 121 primary home sale exclusion.