This option also serves as a benefit to the lender (and potentially the broker) because origination is based on the total loan amount.

@Jason F.I think it will be business as usual or possibly even more sellers will use agents because they can potentially avoid paying the buyers agent…It’s not like Fsbo makes up a large portion anyways.

I'm sure I missed a lot of potential pitfuls, but does anyone think this kind of idea might have legs in the right market?

@Blake Sanford  Blake - what happened with this potential deal?

It's just that you will pay ordinary income rates rather than long-term capital gain rates.

Depending on the demand in your area, this could potentially generate enough income to cover a portion of your mortgage payment.Negotiate with your lender: It's worth reaching out to your lender to see if there are any options for restructuring your loan or modifying your payment plan to lower your monthly payment.

But this makes the mortgage payment higher and potentially limits cash flow or puts you negative.  

Having the right insurance coverage/riders is critical - if you're not properly insured and something happens, the asset could potentially be wiped out.

Moreover, our spacious yard, characteristic of our corner property, contributed to minimizing any potential disturbances.

Would the potential rental income count towards offsetting the mortgage?