All Forum Posts by: Anthony Jordan

Michael, Joe, 

I appreciate hearing both of your perspectives. This gives me a lot to consider and think about. 

Thank you all for the input. Ironically, I am a licensed CPA (not a Tax specialist though), so I do understand the legal trouble that could come with giving any individual tax advice so I will refrain from doing so. 

Also, some additional information that may prove useful. This home is not the owner's primary residence and they have owned it for 30+ years and have paid it off completely. The owners are retired and are simply using the rental for monthly cash flow so I doubt they would want to 1031 the gain into a larger / other property, though that is just an assumption.

I figured an installment sale via owner financing might provide a win / win scenario for them and me. Just thinking through the best way to structure the deal. 

Hey BP, 

I'm looking to make an offer to buy a single family home using owner financing and want to get a better understanding of what the tax implications are to the seller. My initial thought is that the seller would have to treat this transaction as a sale of property and recognize any long-term capital gain recognized from the deal at the time of the transaction. (100% gain recognized up front, assuming no 1031 exchange is utilized). In addition, the seller will have to recognize any interest income they receive from me (the buyer) over the life of the loan. 

What have you experienced when selling property via owner financing and what are the tax benefits and consequences of doing so? 

Thank you for any and all input in advance. 

Time and money like many others have said. I am currently working a full time job and in college full time. I am trying to graduate in December with an accounting degree before the birth of my first child. It is very hard to make the investing leap with so many of life's pressures. I know many of these posts are just excuses but it sure does feel good to let it out. 

Thanks Mr. Hamilton, I will run this by my my current mortgage broker. 

Thanks for the input guys. I will continue to read up on it. I do plan to live in this property for the first two or three years that I own it. Keep the information coming!

Hey bigger pockets members,

I was hoping to get your insight on the USDA rural development loan. I am looking to buy my first house/investment in the next six months or so after I build up my credit. One of my current agents told me to look into this loan type. It is my understanding that it is a zero down loan. Due to the fact that I'm about to have my first child and paying for my last semester of school, this sounds quite appealing. Can a few members share the pros and cons of this loan type versus other loans and what experiences each of you have had in using them. 

Thanks

Young investor taking my baby steps. Excited to be learning and on my way to bigger things.