Posted by John Corey on April 16, 2006 at 21:31:17:
While a L/O is a valuable tool it would serve a narrow purpose in this example.
The window for the tax savings as owner occupied is closing. The L/O would increase the chance the loss would be crystallized.
The present market is flat and no one can accurately predict when it might pick up. Will the market turn negative first or will things just stay flat?
The cash flow with the L/O as you are suggesting might be better (or the consider can be used to subsidize the negative). The legal definition of what a tenant can be allowed to pay for repairs is mixed to be honest. In many places the tenant can not be held to do repairs as the landlord has to provide habitable housing.
Maybe I am missing your point. Other than as a way to reduce the negatives how does a L/O turn around the present situation?