In that case you are committing LOAN FRAUD.Now if you bought something for 200k and it had an after repair value for 400k with  a nice spread in then you might be able to put something like that together with full disclosure and proper structure of course.No legal advice.

I think she wants to get rid of the second 4-plex and just own the one she lives in.I know a bit about 1031 exchanges, but I don't think this is the route she wants to go.I am going to offer a land contract, with two payments, December 31 and January 1, to spread out the tax obligations over two years, but thought I would pose the question to the you and see if there are any other ideas. 

There is no set formula of setting an option assignment fee, you need to understand valuations, what the value of your services are, what is customary, what the property is worth , the spread of the distressed situation and if the deal and property is marketable.

It has been, and continues to be, a much more      geographically broad-based recovery, thanks to a broader array of economic      drivers, including energy, agriculture, medical services, manufacturing, trade, transport and high technology—all of which have been more widely spread around the country.

Does it make any sense to take on a negative equity property with a small spread like that? 

@Rachel Gill   I believe people in real estate like to share because it is a business based on networking and by sharing you are spreading the word on what you do.  

As the development of America spread westward, trade became larger and larger and boomed into tremendous activity.

at Nashua Please help spread the word to everyone you think may be interested in joining us! 

This is how most new peopl envision themselves, by making a profit from price spread. 

I believe selling on terms allows you to spread out the tax affect, but your accountant could tell you.If you do a csh sale you can do a 1031 into a new property in an area you would rather manage, could do nun commercial in another state if you want.Or you could buy some performing notes that would cashflow without the expenses of ownership.