Posted by Jimmy on June 26, 2007 at 06:51:23:
yes, you can still do LO in TX. but the change in the law took away some of the advantage of them vis-a-vis seller-financed sales of properties. You just can’t evict a delinquent LO tenant anymore. you have to go through a demand for payment-acceleration-notice of sale process, just like for SF deals. and you don’t necessarily get to keep all of the LO tenant’s equity. depends on how much they hav paid in.
other rules apply. I never used this technique, and don’t know all the new rules.