3 people own a duplex, 2 want to sell - options? (tenants, agent, investment)

[Mishy9906]

In MKE, WI. For 13 years my husband and I have owned a side-by-side duplex with his sister; all three of us are on the mortgage. My husband and I are ready to sell, (we plan to relocate out of State, to AZ). She is not as willing to move when we'd like to.
Considering these options:
1. She buys us out, maintains property in her name. She rents out the other side.
2. We buy her out, my husband and I maintain the house as an income property and hire a PM to handle tenants, (sister-in-law would now be a tenant).
3. We all agree to sell house at the same time and everyone is happy.
4. Any other options when three people are on one mortgage for a duplex?
Thank you in advance for any advice or other ideas.

[Spottednikes]

You pretty much nailed it. Just make sure she refinances out of your name if she buys it from you.

[convextech]

I always thought these were like condos in that each one is a separate deed. Are there two deeds on one mortgage? If so, you could have a refinance done with your half, hers on her own mortgage, and then you sell your half.

[Mishy9906]

Thanks for the responses. convextech: I wish we had separate deeds, but sadly we don't. One mortgage with 3 people = 1 sad Mishy.
Does anyone know if we would just go through our mortgage co to establish this plan or would we need a real estate agent and/or real estate attorney. Even though I feel I have a grasp of what needs to be done, I'm not clear on how to go about doing it.

[rrah]

There is a difference between the names on the mortgage and the names on the title or deed to the property. It also matters what type of deed or title exists as to your options. The way the title is worded matters more than the mortgage as to whether you can sell it and how to handle that transaction.

[oregonwoodsmoke]

Check with a real estate lawyer to see if they can be converted into condos or a twin home.

I think the only viable option is for her to buy your side and then rent the extra side out. She'll be right there to supervise.

I don't recommend owning rentals from a distance, and that would not be the best option for you. If you want to rent your side, I see no reason for you to buy her out. Leave ownership like it is and rent your side out.

You could all agree to sell but write the sister a 5 year lease on her side. That way she is there for 5 years minimum, everybody gets their money out, and she might be able to stay as a tenant forever if someone buys that as an investment and she is a good tenant.