I've sold a ton of new construction homes in various price points $200K + in the Charlotte, NC market.

However, they should be saavy enough to understand that the valuation of the house is based on what similar properties in the area over the past 6-12mo have sold for. 

An FHA 203(k) loan is definitely one route, but there are other ways to make it happen that might even work better depending on your situation:1.Private or Hard Money Loans: These could be a good option if you want flexibility.

It looks like iowa regulates the transfer:https://ipropertymanagement.com/laws/sold-property-security-...Even if you don't have specific language regarding the security deposits if the leases transfer I would expect the security deposits to transfer as part of the lease.

In the area where I am in CA, prices are through the roof, as is demand, therefore; we have a lot of homes sold for shared housing situations.  

Seller financing, private money, and subject-to deals can open up opportunities that others might pass on.🔹 Maximizing Value – A distressed property isn’t just about fixing what’s broken; it’s about repositioning it for the best possible return.

If you are tight on cash, then you want to use the lender that has the least up front charges to minimize your contribution.When I need to close fact I use private money.

Assuming you sold the home at the end of 5 yearsYour NET ROI would be:0% appreciation: 10.93%1% appreciation: 12.13%2% appreciation: 13.33%3% appreciation: 14.53%This ROI calculation takes into account taxes, insurance, selling costs, repairs (calculated at $3500) through out the lease.

However, since the average lifespan of a U.S. company ranges from 10 to 18 years, most private-sector jobs your tenants hold are likely to end within that timeframe.

I'd sell because you are reaching the time when you lose the cap gains exemption and that $24K would take over 2 years of renting to get back.I had a condo that I owned for a long time and I sold it despite it being paid off and having long term tenants.