It’s unnecessary and potentially problematic to add the ex-partner to the title before the sale.

From what I know of the sponsor’s background, they have NO basis to believe they can successfully navigate the very complicated business of revitalizing a name brand via on line sales only.  

Well, how much is the lot for sale for?

I would take all of the details of your current properties, project what the sale would be, and what does that leave you to invest?

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

Q2 is most important: If the mortgaage is upside down, it would have to be an approved short sale and that could take a very long time to rectify.

We don't want to bring on every owner or every property unless they fit within our target market, so, I do the far majority of the sales - this is our check and balance.

The goal is to slowly build a real estate portfolio and get to a point that I can eventually sale my business. 

The Due On Sale clause was added I think in the 1980s because of "sub-to" deals.

For the son to qualify for the $250k exclusion, I believe he would most likely need to meet the ownership and use test, meaning he needs to own and live in the home as his primary residence for at least two of the last five years before the sale.