Posted by Todd (OH) on February 16, 2002 at 06:03:23:
A) I am assuming from your post that you have acquired your 4-plexes using bank financing in your own name.
B) You did not sound like you were financially distressed to the point where your properties are inevitably headed to foreclosure.
C) If A & B are true, then you may want to avoid having your buyer “take over the payments”. This is a time-sensitive exit strategy used by motivated sellers who do not have better (i.e. more secure) options. You don’t want to jeopardize your nice credit score by putting it in the hands of someone else, if you don’t have to.
D) If you bought your 4-plexes with ASSUMABLE SELLER FINANCING, however, allowing someone to take over your payments might be a good idea.
E) A possible (although not glamorous) solution might be to buckle down, and improve your property managment skills to improve the cash flow. This will make it more attractive to a cash investor so that you can get your equity out in a cash sale.
Feel free to email me if you would like more specific info. I know what its like to own a multi-unit and wish you didn’t…