I bought a condo in Las Vegas in December 2004. I received a loan under the stipulation that I’m a first time homebuyer/primary residence. While it was the first home I ever bought, it is actually more of a vacation home… I live in California (apartment) and keep the condo unoccupied and treat it as a vacation home. I bought the condo as an investment property, to sell in a few years after a good appreciation.
I am now trying to sell the condo (FSBO) for maximum appreciation, seeing that the Las Vegas real estate has slowed down. With the slow market, there hasn’t been any takers. I was considering the lease-to-own option for a one-year contract instead. Which will help offset my losses from the mortgage interest.
Will a lease-to-own option violate any laws due to the stipulations of my mortgage? How will this play in my taxes? Will rent simply be additional income and I can still write-off mortgage interests for deductions?
Any input is greatly appreciated.