On seller side of seller financing

[Justin Ake]

I have an opportunity to sell one of my properties using seller financing. I hope someone can help me navigate the pros and cons. 
1. Can I still use this home’s equity for other deals while the buyer is paying it off in the next few years?

2. Can I still depreciate it until the buyer makes the final mortgage payment?

3. How are my taxes calculated and what years would I pay for the profit I make?

Never done this before so I’m flying blind and hoping someone has a few tips to help me figure this out. Thank you all!

[Chris Seveney]

Quote from @Justin Ake:

I have an opportunity to sell one of my properties using seller financing. I hope someone can help me navigate the pros and cons. 
1. Can I still use this home’s equity for other deals while the buyer is paying it off in the next few years?

2. Can I still depreciate it until the buyer makes the final mortgage payment?

3. How are my taxes calculated and what years would I pay for the profit I make?

Never done this before so I’m flying blind and hoping someone has a few tips to help me figure this out. Thank you all!

 1. No

2. Typically No

3. You are paying ordinary income rates on the interest -no way around that. Even if you charge 0% interest govt will say sorry but we charge min. based on AFR which is around 4% ish. 

Not a CPA but typically start paying taxes once your basis is reached. So lets say you depreciated the value down to $50,000. Once you pass the $50,000 in principal payments from financing you are then taxed at that.

Personally unless the property cannot be financed by a bank, seller finance is not your best friend (especially in Pennsylvania where it can cost $10k to foreclose on someone and take over a year).