OWNER CARRY - Posted by Steve
Posted by Steve on March 07, 2002 at 20:07:48:
I have a few questions about owner carry:
I have agreed to carry the loan for a few months for an interested buyer. Purchase price is 135,000 which is what I need for a loan payoff.
If I profit zero, I don’t have to pay taxes, correct?
I have owned the home less than a year.
How do we set up the contract so it doesn’t trigger the due on sale clause with the lender? Can we do something like keep the contract with a third party (attorney or title company) and not record it until the actual sale?
Would I change my homeowners insurance to renters insurance even though technically he is not renting it?
How are taxes affected? If he is paying $1000/month (which covers the mortgage payment), how do I show this as income but at the same time deduct the mortgage interest?
Since he is buying and not renting, I do not want to be taxed on his monthly payment to me.
Hope that all makes sense
Thanks for your help