Posted by Brad Crouch on January 26, 1999 at 21:57:30:
I was looking at this as a tenant buyer. I keep hearing about the $600 per month rent credit, but looking at the total monthly outlay, we’re talking about $2,100 per month. As you said, mostly interest.
If the guy lives there for the full three years, only $600 per month is reducing the ultimate selling price. He’s still paying $2,100 per month!
If he exercised early, and as his primary residence, wouldn’t he be able to deduct all that interest and actually come out ahead?
I know that as a RE investor, we’re not supposed to take tax benefits into account, but shouldn’t they be considered when calculating the position of the folks who are an integeral part of out exit strategy?
I guess this deal doesn’t matter anymore since I read above that the deal had been lost. But this might be a chance for me to learn something, so it’s still a good exercise.
And if Rick came to me with this deal to assign to me, I can’t see where I would want it. What am I missing? Why would anybody be hot to accept this assignment?