I own a house ( actually alot of them ) free and clear Problem is I havent had them a year… ( TAX!!!) So IF I do a simultaneous closing witha "owner financed buyer and then sell the note to a note buyer does that = the HIGH dealers tax?
Should I do a equity loan and just rent the houses out indefinately?
Is rent to own a better tax angle for me? cause its past the 1 yr mark then for ownership
If so, then yes. Your sale is a dealer disposition. Creating a note and then selling the note at a discount may lower your taxable profit, but when the dust settles you still have a dealer disposition.
Change your plan. Hold the property for rental use for a couple of years. Do not lease option, just do a straight rental. Now when you sell the house, capital gains tax treatment applies, and you can do an installment sale tax treatment if you carry back the financing.
I didnt actually have a plan im pretty much open ears to ideas I know that i really enjoy working on houses and I really hate having tenants lol Im out of town so theres no way for me to micro manage a tenants complaints Is Rent to own a good option to offer ( I see alot of sites that seems to have a huge pile of listings down just that )
2nd issue Staying liquid without tons of fees etc
I bought this in cahs and am loving not having a mortgage over my head But I want to have cash available to do the next house ( im partial retired so this is all i have to do to keep me occupied) anyway do I take out a equity loan? Seems risky