Posted by Bill on December 29, 1999 at 15:11:41:
I am new to the REI world. I’ve been lurking here reading your excellent posts, but now I have a possible deal I’d like your opinion on.
I’ve been managing a small, single family rental for my Uncle for the last 18 months. He has moved to Honduras and is back for the holidays. The property was his residence before he moved. He wants to sell it before he loses his one time capital gains exclusion.
The city assessment is $53,800. I could probably sell for 60,000, but I have not done a detailed comparison to determine market value.
He will sell to me, no money down, 100% seller financed. It is currently rented for $500/mo to a very good tenant. I’m not sure how flexible he is on price.
What advice or suggestions do you have? Can he still take capital gains exclusion if holding a note? Is there a minimum interest rate? I’m sure he would rather sell at higher price and receive low (or no) interest, as the interest is taxable (I guess )
Again, this is my Uncle. I’m looking for a truly win-win deal. Thanks in advance for sharing your expertise and experience with me…