Even though WE are NOT originating a loan here; it would be the EX-Husband who would be "originating" the Loan (by taking back the Deed of Trust and Note) in order to SELL his 50% interest in the house, the TIE IN is with our BUYING or INVESTING in the purchase of the DOT and Note to generate CASH to him, and CASH OUT to Her is wherethis becomes a "Gray Area" of whether it violates any of the CFPB Consumer Financial Protection Bureaus requirements and could be re-characterized as a high cost LOAN IN DISGUISE ALTERNATIVE THINKING We are thinking a better way to go here IF the EX-Wife agrees; it to SELL the house NOW, pay off the EX- Husband and enter into a 3 year LEASEBACK with the buyer of the home. 

If you're not going to drop thousands a month into your own marketing to home sellers, they offer a good alternative strategy.  

Additionally, we are open to exploring other options beyond selling, so any advice or alternative strategies from those with experience in similar properties would be greatly appreciated.Thank you in advance for any guidance or connections you can provide.Best regards,Matt Ginsberg

Alternatively, do you have equity in the Joshua Tree House?

The image attached is an example calculation I did and I had to push the appreciation to 25% to be able to pull a good amount for the next down payment.With these calculations, it made me realize that I might have to find alternative ways to go from house hack one to house hack two.

Alternatively, we can pay all cash too.

Contact a realtor or mortgage broker to find properties, negotiate conditions, and investigate financing alternatives.

The other common alternative is to wrap the treads of the staircase in carpet.

Alternatively, once the existing tenant is out, you can lease at market rate.The real challenge of "non-landlord friendly" areas in the form of: your ability to adjust their rent from one lease term to the next, rent control issues that would limit your ability to ever push rent increases over time, any mandates on required renewal options for existing tenants (typically come with rent control measures) and the ease and speed with which evictions are processed. 

@Lily WangHouston's varied economy and rising population make mid-term rentals (MTRs) an attractive alternative for a variety of tenant groups.