Currently building a duplex as a long term investment. In the middle of building I was approached by a buyer who wants to buy it as soon as it’s finished. I would prefer to hold it for at least 1 year before selling. I s there a way to set up a contract where I will hold the property for 1 year after completion and sell to him then----with the caveat being that he will pay me for the 1 year to cover my interest, taxes and insurance while he would be able to rent out the duplexes and keep whatever profit that would be leftover from what he pays me.
I would then be able to depreciate the property for the year and then have long term capital gain after the 1 year sale if I’m correct. Any ideas as to what type of form or wording I would have to use for such an arrangement? His benefit would be that he gets a nominal gain each month for the 1 year and then the agreed contract price would be locked in at todays rates and not 1 year from now. Thanks.
Have an attorney review the final agreement.It seems to me that
you will be able to use a lease option agreement with the buyer having the right to sublease.