All Forum Posts by: Jeremy Pace

Thank you both, this is most helpful.

OK,

Seller A owns a SFH free and clear.

Buyer B wants to purchase home from A using seller financing.

Seller A will be taxed on this mortgage in the following way:

1) Interest is taxed as income

2) ?????

@Bill Gulley 

what is used to identify the basis? previous purchase price? assessment?

even if they are the property owner?  Wouldn't that mean that they are receiving tax-free income?

My question is this:

I know that on a loan is taxed as income.  If I'm buying a house (free and clear) from the owner, how is the principal portion of that payment treated (for tax/income purposes) for the LENDER.  I'm not interested in how it impacts the borrower, thanks in advance.

This deal concerns me a little. If the numbers you've listed are correct, you don't have a lot of wiggle room for maintenance and repairs.  For example, who will mow the lawns and clear snow?  Also, what are the furnaces and water heaters like?

Lastly, I find it hard to believe that you'll be able to secure $190,000 mortgage and only pay $800 a month.  Could you elaborate?

I wouldn't do this, you'd have to install a subfloor under it, and then you'd have to remove it when you moved out, or the landlord could say you altered or damaged the unit.

Have you already tried using deodorizers?

I have a repair cost forecasting question:
Is it possible for me (not a contractor) to have access to contractor prices for things like furnace, or electrical supplies?  I recently worked with a trade contractor to replace a furnace, and realized that they have access to prices and information that I didn't know existed.

Long story short, I got a furnace for about 1/3 the cost that I had expected.  I'd like to see if there are any other cost gaps in my maintenance plan.  This would make my efforts to force appreciation more accurate (at a minimum) if not more efficient.

My focus right now are things furnaces and biolers, water heaters, electrical boxes and wire/conduit.

Thoughts?

Diagnosis: bonnet are some other components are badly corroded and need replaced.

I'll post details of the estimate once I have it in hand, so far i've only had a phone conversation about it.  I'm not authorizing the work until I'm 100% on board with the plan and the reason.