What Have I Done?
Hi all! I have 2 sfh that I usually just rent out. Last time I filled them I collected a non refundable option fee of $2,000 and did a 10 year lease. At the end of the 10 years I gave them the option to puchase the home for $10.00. They are responsible for all maintenance and repairs. I determined the rent amount by deciding what I would "sell" the house for, 10% interest, 10 year term, and then added on the taxes and insurance. All stays in my name and I pay taxes and insurance. Is this a lease option? At the end of 10 years when I "sell" the house for $10.00 how will the tax treatment be? Any suggestions for doing this a better way. I LOVE not getting repair calls on these! It seems to be working well. Thanks in advance, Amy
Comments(0)
Offer 2:1 rental credit to increase rents OR just tell the T/B in order to get them qualified in a year, they have to prove to the lender they can afford the mortgage by paying rent comparable to what a mortgage payment will be for them in a year.
[addsig]
What did your ad say?
[addsig]
What is a 2:1 rental credit?
LB