Phillip,
In my humble opinion, “owning” the home, (actually the trust that owns the home) is WAY better than just controlling it.
This allows you to sell the home however you want, and many other advantages.
For example:
You now have ALL the tax advantages. You can deduct the interest paid on the loan and the RE taxes.
You can sell the home using a L/O, Land contract, a wrap, and any other way you see fit.
That is pretty much how I see it.
Not too mention, some people just plain like to be able to say, “I OWN this home”. (I know in my newbie mindset I still do.)
I’m sure there are other advantages here as well, someone else will surely point them out.
But, for now, thats all that comes to my mind.
Talked to a seller who is open to a L/O…He is currently (2) months behind on his house payments ($950/mo). Does it make sense for me to make up the payments and L/O this, or is there a better way to buy/control this house, and why? FMV is around $120K, seller owes $115K.
Jvc,
There are some other questions I would have, and other info needed before making a decision on keeping the home.
Such as, what is the market rent?
What about repairs? Any needed? if so, how much to do?
Then, if all looked good, and I was confident of my ability to find a Tenant or Buyer, then I’d try to get it under some form of contract.
Personally, with that little amount of equity, either a L/O or a “Subject to” deal would work.
I prefer taking the home “Subject to”.
GET THE DEED!
And, if the seller wants too many hoops jumped thru, NEXT!!
Not enough equity here for me to go thru any hassles.