All Forum Posts by: Shelley Rubino

Are there tools available to help make the decision whether to purchase a home via seller finance versus a second home with a traditional mortgage? I'm intending to buy a home for my daughter in college and I'm trying to figure how best to compare the two options. My motivation for doing a seller finance deal is because I already have several mortgages attached to my name for other investments. Seller advertised willingness to do seller finance. I could pay cash but prefer to have available cash on hand. Stupid question, but will I still get a 1099 for interest? Thank you!

Thank you all so much!

I have been reading tons of these blog posts and I feel like I'm more confused and I'm thinking it might be because the market has changed so drastically in the last two years.  What I'm trying to figure out is as follows:

I paid $550k for my primary 5 years ago.  It's worth $950k now (per recent neighborhood stats).  I live 1/2 mile from the beach in Florida - market is booming since covid for ST rental, LT rental and sale.  

I'm stuck on whether to sell or do a 1 year lease for $5k/month.  If I sell, as a single taxpayer, I will pay capital gains tax on $250k.  If I rent for a year, I can net $1,500/month. The mortgage + expenses are $3,500/month including a home warranty that covers all appliances and HVAC.  

I've been renting it ST for the past 6 months.  I really really hate to pay capital gains tax. I'd like to buy another (less expensive) property with the proceeds, but I'm not looking to reinvest all proceeds right away.

What process do y'all go through to analyze the rent/sell scenario? Thank you!!