I've been told that as long as I have a completed HUD1 Settlement Statement that the bank will count it as a sale and not require me to qualify on two mortgages, but obviously I want to be sure before I proceed.

Any thoughts on how I should proceed?

Sure there is principle paydown of $2500 a year but I think I can use the proceeds to fund 2 more properties that cashflow and don't have an HOA.

Option BI could keep it and reinvest cashflow ....or....I could get an equity loan on the property to use that $$$ to buy/fix another propertyOption CI could propose a lease option or owner financing option to current tenant starting business in propertyOption DList property for sale...reinvest proceeds elsewhere for another rental or find a flipPlease post your thoughts, suggestions, etc...

Or did I just take on additional tax deductible debt, and end up with the non-taxable proceeds from my original property?

I know this is an old thread but it helped me so I figured I would post this for the sake of forum posterity-Here's the actual law:http://www.justice.gov/crt/fair-housing-act-2Here's the text pertinent to the exclusions: (b)Nothing in section 804 of this title (other than subsection (c)) shall apply to-- (1) any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time: Provided further, That in the case of the sale of any such single-family house by a private individual owner not residing in such house at the time of such sale or who was not the most recent resident of such house prior to such sale, the exemption granted by this subsection shall apply only with respect to one such sale within any twenty-four month period: Provided further, That such bona fide private individual owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three such single-family houses at any one time: Provided further, That after December 31, 1969, the sale or rental of any such single-family house shall be excepted from the application of this subchapter only if such house is sold or rented (A) without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman, or of such facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of any such broker, agent, salesman, or person and (B) without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of section 804(c) of this title; but nothing in this proviso shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as necessary to perfect or transfer the title, or (2)rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence.

This way if you have to take them to an eviction proceeding for non-payment, it is for rent and not utilities, which many judges like to toss aside.  

If awarded the contract, the undersigned hereby agrees to sign said contract and furnish the necessary documents list under "List of Contract Documents Submittal Upon Award" within five (5) calendar days from the date of notification from CKCC to do so, and to begin work within ten (10) calendar days after receipt of notice from CKCC to proceed with the work.

Or, I might just assign it for a quick payday.What might my options be to proceed and make this a deal?

I then proceeded to call a real estate attorney in regards to reading them over.