Writing Off Property Taxes & Int., From A Sandwich L/O
I am a newbie to L/O, but am getting ready to start sandwich leasing properties.
I have read many posts on this board that the holder of the sandwich L/O cannot write off the prop taxes or interest on the note in question. This brings me to an idea. What if, I get my sellers to "owner finance" the property to me, then I L/O it to my buyer. That way, I will be able to reap the benefit of the taxes and interest for each property.
Is there a downside to this method? Can this be done?
Please advise....
No major problems aside from an up-front commitment, but you may have to pay a down payment and undergo a credit check going this route, whereas you can normally get into a L/O with no credit check (and frequently no cash if you locate the right Sellers and present the deal correctly). If you deal with some of the more motivated Sellers, you can accomplish this by getting the Deed (sub2).
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