Lease2Own in Las Vegas

General Real Estate Investing
1

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.

2

As long as you can show that it is reasonable for you to have to live in CA, i.e. work, you can own it as an investment property. Unfortunatley, you cannot write off the interest on an investment property though. Because in theory you’re not supposed to be the one paying it.

As far as the lease option goes, you need to check the market value of rent in the condo’s area and see if it would be beneficial to rent it for more than your current payment is.

Being in the Las Vegas Area I would be happy to help you. I am a mortgage originator with First Source Financial.

Lloyd Green