@Jim Johnson   the issue if its like Oregon is that MLO's have to work for a principal broker.. and the risk reward is just not there. this is going to create a bizz opp for the first company that steps up and does just owner finance deals for third parties. 

Not really difficult you can either cash out some funds depending on where your current loan balance is if you wanted to retain your current home and buy the multi or you can sell your home potentially tax free to purchase the multi (section 121 - principal residence exclusion).

Meaning they can say because there was a title transfer they are owed their full loan amount and they can initiate the foreclosure process to recoup their loan balance.

Details:-I owe 56k and it's worth 110-115- probably be able to pull out about 35k and buy a house cash for another rental -10 year mortgage with approx 7 years left -Currently rented @945 which is basically a wash w payment taxes insurance etc.- rented out to a fantastic tenant -A- area - best area in bay city MichiganI really think I want to wait the seven years and have a 120k house free and clear renting at 1000 per month and I'll be 36 years old at the time. $35k will allow me to buy a house in the b- c+ neighborhoods.

You owe the bank money on your ouse but they are not going to come paint it for you or decide they want to rent it out, put in a garden ahead etc.

As a Mortgagee all you are entitled to is the principal and interest due not the property.  

If not, you stand to make an "automatic" ROI by paying down your principal to get rid of the PMI. 

I would speak to a lender about a cash-out refinance on the property that gives you enough money to buy your wife out and pay off your current credit card debt, or a combination of the 2 (if you both are responsible for the debt, have her agree to take the portion she owes on the credit card debt out of the 35K if that's the figure you've agreed on for the property so marital debt will be cleared at closing).  

Conversely, (in my mind) the longer we hold, the more we would owe back investors.But I really appreciate your feedback as this is our first deal.

So it all kind of adds up to me putting my principal and profit into the stock market with a portfolio manager who is likely to get me 8% annually taxed as capital gains.