1031 and lease option question on multi-unit
Hey fellow BP'ers . I really could you some sound experience and advice on this one. Still have this multi-unit in the pipeline. I have a seller willing to hold a short term note (12 months) was going to do a lease purchase since I am short on down payment funds. Was hoping to do this as a purchase instead of a lease purchase but seller said If we transfer title with only 10% down. $33,290 (Sale price 332,900) that he would have to pay capital gains tax on the full amount. 1) Is this accurate? 2) Is there any way around this.? I want to pull the trigger on this deal, but I'm really concerned that I wont be able to come up with additional down money at end of term. If I did as a purchase, then it would be a simple cash/out refi. I'm thinking I may just have to walk away on this one, and chalk my deposit up as lesson learned
Thoughts on what do do anyone?