Do you think this is shitty or smart?

[Harvest Moon]

I don't think what your friend is trying to do is "shitty" per se...but just plain stupid. She's gonna lose 12 years of equity.

I don't think they have any equity if their house has lost at least half of its value. She said it's throwing good money after bad.
I think if you rent it out you have to do repairs but if you lease, you aren't responsible. Not sure.

My word for what your friend is doing is "sleazy." If somebody I knew was doing that, I would just kind of distance myself from the friendship. Is it "smart", maybe from a pure financial perspective, but sleazy just the same. Like a lawyer...

Which brings me to legal advice, I hope your co-worker/friend is being advised by somebody familiar with the legal ramifications of their idea.

As for loosing 12 years of equity. It is an unfortunate fact that many homes have lost equity in the US, so the concept of having equity in a house is now just a fallacy.

Cracker, I think you are right about the difference between a rental agreement and a lease. If you rent your property, you are required to make repairs. In a lease, the "leaseholder" is responsible for repairs and can also make certain renovations.

edit to add: Fuck you grammar police...