$305K - Calibrated price
-
CC nets the same as retail. Both parties transact with full confidence. Buyer acquires at $265K effective: genuine $40K below-market entry.
$350K - Buyer must evaluate
-
At 13% equalization, buyer effective is $304,500 - research midpoint. No below-market entry. Only works with 3.7% financing and bath add conviction.
Retail - Maximum outcome
-
If no transfer basis works, retail is the right answer. Requires 3-5 months, prep costs, execution risk.
CC
CC - 50% Owner, Exiting
Thin equity on leveraged rental. Lease ends May 31, 2026.
Path 1 - Transfer at $305K (recommended)
CC nets approximately - equity cash, plus $3,600 loan repaid - total approximately -. Certain, market-equivalent, zero execution risk.
Path 2 - Transfer at $350K
CC nets approximately - - about - more than Path 1. Defensible within bath-adjusted comp ceiling. If buyer's math works at $350K, fair to both parties.
Path 3 - Retail sale
CC nets approximately - at $350K retail. Every month from May 2026 costs CC approximately $1,100/mo carry.
If CC takes retail instead of $305K transfer, how likely is each outcome?
Direct transfer closes cleanly
High confidence if buyer pursues.
Retail achieves $350K or more
Thin buyer pool above 3-method research ceiling on 1-bath property.
Retail nets CC more than $305K transfer
The key number. In roughly 4 of 10 retail attempts, CC comes out ahead. In 6 of 10, the $305K transfer produces an equal or better outcome.
Tenant renews past May 2026
If no, Phase 1 carry begins at ~$1,100/mo for CC.
The Data-Driven Conclusion
What the math says - no interpretation required
CC
$305K is the recommended transfer price. CC nets approximately - equity cash, plus $3,600 loan repaid - total approximately -. Mathematically equivalent to retail at the same basis, with full certainty.
CC
$350K is a legitimate ask - defensible within bath-adjusted comp ceiling. CC nets approximately - via transfer or approximately - via retail.
JD
At $305K: $40K below-market entry supports the thesis. At 7.2% CF is negative - conviction required. At $350K: Market-price acquisition. Only makes sense with the 3.7% structure and bath addition conviction.
Both
If no basis works for both parties independently, retail is the right answer.
Recommended structure
Agreed basis: $305,000. Equalization: 13%. Effective transaction value: $265,350. CC receives - equity cash at closing. JD repays $3,600 loan to CC at closing. JD assumes the $218K mortgage. Business checking ($7,283 net) settled equally as a separate transaction.
Alternative: Retail Sale
List at $321K-$350K. At $321K: CC nets approximately -. At $350K: CC nets approximately -. Timeline: 2-4 months.
Probabilistic analysis based on Zillow, Redfin, Ramsey County Assessor, three-method valuation, Twin Cities market data. Not a substitute for licensed appraisal or financial advisory. Loan: CC owes JD $3,600, repaid by CC at closing.