Seller carry is not an option due to the home being in pre foreclosure.

My plan is to move, carry both mortgages, put about $10-15K into my current property over the next month or two, and then sell it.

I got a lump sum of cash down and then I carried the contract for the remaining portion.

So, the losses will be carried over year over year as Passive Allowed Losses (PAL).  

Seller carry is not an option due to the home being in pre foreclosure.

PS If I was looking at this deal I would be writing the contract that I would close upon county approvals for my lots.. what kills development is the interest carry between buying and getting your plat approved..

I would estimate that we would have to carry the construction loan for 6 months before we could rent it for $1600 - $1800 a month.

In the bad old days of double digit mortgage rates an acquaintance of mine used to pay full price for property mortgage free and have the owner carry back 95% in a no interest 5 year fully amortized loan.  

This month I'll partner with my daughter on a Subject To deal in the SL Valley.I've looked a several seller-financed properties both SF and small MF but the sellers are unrealistic about pricing and I have no interest in a negative carry. 

The  tax deduction that you end up receiving can also be carried over into other years.