"New" Texas CFD vs. AITD vs. L/O - Posted by Mike DFW

Posted by William Bronchick on March 08, 2002 at 07:00:17:

In your case, a lease/option would probably make more sense because of the tax hit. If you sold on an installment sale, the minute the buyer cashes you out on a refi you are going to get zonked on the large gain. If you sell via lease/option, it is not a “sale” for tax purposes until the buyer exercises, at which time you can do a 1031 exchange and roll the gain into another property.

“New” Texas CFD vs. AITD vs. L/O - Posted by Mike DFW

Posted by Mike DFW on March 08, 2002 at 02:37:06:

I’ve got a Texas property worth $215K, I owe $120K in the form of a fixed 6.9% loan at $881/mo. (plus $450/mo prop. tax) with 21.5 years remaining. I have been renting it out for the last 6 years, most recently at $1600/mo.

I want to sell and finance it myself. CFD seems to me like it makes the most sense in this case, but is it since the laws are now so much more restrictive in TX?

If CFD is now too much of a pain, what would be the best way to set this up? Would an AITD be a better way to go with this?

I think a Lease/Option would make sense, too, but I’m assuming at this price level that my buyer may want to actually buy and not just rent…

Thanks for you continued priceless help on these boards!!!