Posted by Ernest Tew on July 29, 2002 at 09:27:24:
Bob, assuming your figures are in line and you can sell the mobile home for $16,000 on terms, it sounds like it could be a good investment.
For several reasons, the best approach is to enter into a net lease with your customer and a separate option to buy. However, if the transaction isn’t properly documented, it could be construed as a sale if you are ever audited by the IRS.
If you (or other readers) would like to have a copy of the Net Lease and Option forms we use, please send me an email request.