Rob, I think you would trigger the due on sale clause, but these forums discuss buying property subject to the existing mortgage, so maybe search that phrase and see what it says and if you could use it.NOTE FROM MODERATOR: Please see Rob's post below.

It is one of the true "grey areas" of real estate, as there are many debates as to whether or not it will trigger the due-on-sale clause and/or whether the lender will accelerate or call the loan.

Changing the beneficiary(ies) will trigger a change in ownership in CA and thus, require transfer taxes to be paid.Kevin Yoo also mentioned some very important items that are true in many areas, particularly CA and that is the use of large EMD, short inspection, quick close.

The usual: divorce (especially in a community property state), health problem for you or a family member, uninsured/underinsured catastrophic loss for you or a family member (such as a personal injury car accident), a self-employed tax problem/debt, etc.The less usual: a local water district concluding that the water in the entire area causes leukemia or other cancers and therefore no houses are habitable (which is very possible in some areas of Texas), a prolonged drought that causes the local portable water supply to dry up, a major employer or employers moving out of the area/closing, one tenant (or other person) getting hurt on the property (and getting a multi-million dollar judgment against you), one local tax agency assessing a property tax on your property (I had one try to assess a $100K tax to fund an adjacent highway improvement....), etc.

Old Oriental Proverb: Before kicking sleeping trigger like Michael Quarles, you best have a plan to deal with the teeth!

We offer a set concession (typically $3600) which is simply applied to the buyers closing costs, doesn't trigger rent rate appraisal, and doesn't exceed 6% FHA max allowables.Once you try to use a rent credit to "just reduce the sales price" it creates a mess.

Although I have decent income and can show the payment history as a tenant my credit is not that good due to a work injury.

Is there anything else you guys would recommend to protect the 10% i am putting in  Almost certainly will trigger your loan's due on sale clause.

Each new roommate triggered a new roommate agreement, but my primary was always on the hook to me.

I'm thinking of pulling the trigger and getting my first investment property, but I'm torn on how to go about this; condo or SFR in a hot rental neighborhood.