Posted by Dave T on May 25, 2000 at 23:12:27:
Is the $394 PITI ?
Would you consider a subject to deal for the mortgage balance?
Where in SC is this property (I live in Pawleys Island)?
I’m moving temporarily and want to creatively have someone…(kinda long) - Posted by Debra(SC)
Posted by Debra(SC) on May 25, 2000 at 17:03:09:
make my payments. My 21-year-old daughter may possibly stay in the house. It that’s the case, what would be the best way to do this? Mortgage is $394/month. Should I lease it to her or what? I’m not sure if I want to sell the house yet, but we ARE planning to move. Another scenario would be to sell the house to our neighbor. If I do that, would a Land Trust (Agreement for Deed) be the answer? If we do business with him, then I KNOW we will want to sell the house, but he can’t get financing right now. I guess what I need is input for both scenarios - leasing to my daughter or selling creatively to my neighbor who, by the way, is lease/optioning the house from us that he is in now. If he took the house we are living in, we would release him from his lease option next door. Confusing you? sorry.
Just need some input.
Thanks
Re: I’m moving temporarily and want to creatively have someone…(kinda long) - Posted by ToolBar_SC
Posted by ToolBar_SC on May 26, 2000 at 08:51:37:
If you do plan on leasing to your daughter be sure to set it up on a business basis only. I would recommend you discuss this with a good Tax Accountant. The IRS rules could get you in trouble if you don’t follow all their rules. The one question you need to be able to answer is can you evict your daughter if she gets behind in rent? I have two doughters and wouldn’t lease to them because I wouldn’t be able to evict. If I can’t evict then the IRS could come back and disqualify all my rental deductions on this house. Resulting in a BIG tax burden plus possible penalties.
As far as selling to your neighbor, if you are going to sell then just decide how you are going to sell; L/O, wrap, Subject To, owner financing, streight sell, etc. It shouldn’t matter if it’s to your neighbor or not. Just decide what you want to do and makes the most sense to you. If your neighbor qualifies then great. If he doesn’t then someone else should.
If your neighbor is leasing from you now and then you sell him your house, isn’t this going to cause you to have to look for another tenant for that house?
E-mail me and I’ll gladly discuss it with you more. Where in SC are you? If close enough I’d be willing to discuss it in person.