Hi everyone.  My wife and I want to take action and purchase our first rental.  It will be for my son first and then my daughter as they go through college. (My son needs a place this fall, and my daughter will when s...

I am not looking for someone to advise on how to invest money, purchase annuities etc. 

Students must live in campus approved housing for freshman and sophomore years, and junior and senior students with scholarships are also required to do so, however juniors and seniors without scholarships tell me they are anxious to live "off campus"Since apartment is one block from university, students can walk to campus, saving them parking permit fees.Additional income could be had by putting in coin laundry, soda/snack machines, and renting out storage units in basement as well as garage space.I have a friend that currently is the maintenance man for the entire university, and he is questioning students as to how much rent they are paying to live off campus currently.OPTIONS:  Rent furnished apartments to 4 students per two bedroom and two in basement unitRent furnished apartments to 4 students per two bedroom and create common area in basement for study/recreationRent all units unfurnishedOption to raise rents by including all furnishings, cable, wifi, cleaning service etc. with them simply paying rent and electric.FINANCINGtax value (not market value) 105,000Taxes $2,200 with no exemptionsProperty currently has a 30K mortgage left of a 55k loan previously taken out to "give first child his half"Owner, due to age is most interested in payments, and leaving remainder to 2nd child for "her half" Owner has expressed the following offer :30K to pay off current mortgage, and 250K to purchase an annuity that would pay $10K/year for his and his daughters lifetime.In its present state, I question whether the property is able to be financed FHA due to condition, though it is a solid building, the maintenance has been deferred.comps on property are practically non existent.MY SITUATION:I have perfect credit, and am about to flip a seasoned home with no mortgage and expect to clear approx. 70K.I am single, steady long term employment, and have no debt.I have a realtors license in inactive status, and have hands on experience with major property improvements.I am a "Dave Ramsey" girl, and debt makes me quiver...  :-)Note: Property is currently in a Life Estate Rev.

I think I have pretty good grasp of 1031 exchange but what is the pros and cons of going the private annuity trust with the sale of your real estate asset?

These are all legal tools to help seller sell that has a difficulty with low equity positionsNow if it's not low a equity but it's middle equity like $400,000 house $200,000 equity, most sellers will just pay the cost to sell which are about 10 to 12% of the value of the house when you include everything commissions closing costs sellers concessions and holding costs while it's being soldOver a third of houses out there or free and clear with no mortgages and this presents an opportunity to let the sellers know that if it is free and clear where they can do an installment sale and use their house as a retirement asset with no due on sale risk, own a private mortgage, get a cash flow like an annuity payment, and the cash flow can survive ther death and leave it for their kids or charity

Many passive RE investors, hard money lenders, and note buyers seem to be happy with low double digit rates of return, thinking that, relative to stocks, bonds, mutual funds and annuities, mid-teens is a respectable yield.  

So he wants to give the money to a financial manager and take an annuity. 

@Albert You are asking a big question1 if you are buying from sellers on seller financing, it is investor to investor, not owner occupied, no Dodd Frank2 if you are buying for owner occupancy on seller financing there is Dodd Frank, see a RMLO3 find a seller that wants payments over time, I compare with the owner seller financing with annuities and reverse mortgages.Albert D.undefined

The 30-60k profit would have had significantly less long term value than preserving the gains, along with getting principle pay down, cash flow and also slowly build up more annuities.

We have a sizable amount of equity in the home we live in and I also have an annuity account set up through my work that I can borrow against.