The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

There will always be people with money who want a second home in Colorado who are fine as long as their mortgage is covered.

Have $500K mortgage.

I find this data super interesting, and took the opportunity to dive into their 2025 edition this week.Nationwide they say we can expect:Average mortgage rates of 6.3%, with rates edging down over the year to reach 6.2% by the end of the year.Home prices will grow by 3.7% across the US, which is pretty modest.

I want to know is it more cost effective or easier to purchase the property alone and put it in a mortgage in our name or purchase the LLC from him that holds the property within it.

It’s not just the cash received at closing, you have to consider the mortgaged portion of the relinquished property. 

And I would love some passive income or at least someone to pay my mortgage until we can pay it off maybe.

If you are selling for 1M after closing costs you could purchase two 500k properties in your exchange and own one cash and a mortgage on the second.

Unless this is some type of homerun deal, which I assume it isn't if the mortgage is upside down, then why bother?

Aloha is the only name that shows up in the public record as owner of the loan.Wrt whole notes, ownership of the note and mortgage/DOT is transferred to the investor via an assignment and allonge.I agree w/ @Jay Hinrichs, a 100% secured interest in the loan is safest.I haven't invested with them yet, still considering.