I currently have a house with a $75K mortgage. The house is worth about $110K so I have about $35K in equity. I would like to purchase a new home for myself, and keep my current house as a rental property. But, I don't have the cash needed to put down on the new house. Is it possible to sell 50% of my current house to an investor and use the proceeds to put down on the new house and pay down my current mortgage? Do people even do that?
Or the alternative is to sell my house outright, and miss out on the investment opportunity.
So let me rethink/reword this a bit... What is the difference then if I formed a partnership with another investor to buy a house 50/50?
In this case, I would happen to be the seller and the partnership would be the buyer. So, as a partner, I would need a $55K mortgage for the current house and the other partner would need $55K.
This in effect would reduce my current obligation by $20K and give me a profit of $35K which could then be used toward the purchase the new house.
I know it sounds sketchy, but I'm trying to figure out a way to keep what I have as an investment, and also move into a new (to me) house. BTW, I can afford to make the payments on both in the event that I do not have a renter in the old house. I just do not have the 20% down payment cash needed for the new house and am looking to generate some cash.
Or the alternative is to sell my house outright, and miss out on the investment opportunity.
So let me rethink/reword this a bit... What is the difference then if I formed a partnership with another investor to buy a house 50/50?
In this case, I would happen to be the seller and the partnership would be the buyer. So, as a partner, I would need a $55K mortgage for the current house and the other partner would need $55K.
This in effect would reduce my current obligation by $20K and give me a profit of $35K which could then be used toward the purchase the new house.
I know it sounds sketchy, but I'm trying to figure out a way to keep what I have as an investment, and also move into a new (to me) house. BTW, I can afford to make the payments on both in the event that I do not have a renter in the old house. I just do not have the 20% down payment cash needed for the new house and am looking to generate some cash.