I just had to let a sub2 deal go because the woman whose house I wanted deeded to me said the “covenants” of the neighborhood would not allow rents. What the heck? Thanks.
That’s easy. Place the property into a land trust and grant a beneficiary interest to your tenant/buyer. The IRS considers him an owner so your home will be “owner occupied”, even though you have him on a triple net lease and you both own personal property, not real estate.
Da Wiz
try that with a Mobile or modular park or some of the other Owners associations. They check up on the occupants and usually need to pre approve buyers. Heck they have harder requirements for owners to buy than the banks. And most will not allow renters. am sure that your Do it all trust Nars Pac or what ever will take care of this of course, but I doubt it. As these associations can be somewhat close knit, word gets around. Some I can see being able to get away with a lot, but not very many.
Unless you use a NARS, PAC, or other Land Trust of course.
Framer,
You can’t place a mobile home in a land trust unless you own the land as well. As for homeowner’s associations, it’s easy. Their rules usually say “the owner must occupy the property for one year.”
I buy the home. I place it in a land trust and name my non-profit corp as trustee and he takes title. Your right to place your asset in trust is protected under Federal Law. Now, I need someone to manage the property for me so I ask you to live in it, make the payments, and maintain the property in exchange for 50% ownership in the trust (personal property). We agree to share future profits 50/50.
You are an owner of the trust (personal property) and considered an owner of the real property for tax purposes by the IRS. When it’s time to buy me out in 3 years, you refinance. The homeowner’s association says the owner must occupy the property – it doesn’t say which owner.
Da Wiz
Does this method really work in FL with all the new homeowners associations on preconstruction. Everywhere in FL they want you to own the home for one yr, Some say you can allow immediate family to occuppy it but you can not sell it for 1 yr or collect rents.
just wondering now…i know some new communities popping up with great prices in the clermont Fl area and wouldnt mind investing but they want that 1yr crap…