It depends on if the loan is FHA, VA, USDA or conventional and if the guy you are buying from went through escrow or just did a "kitchen table closing", if the property was in foreclosure or late on payments in the last 6 years (right, you're in Washington State - where socialism went when it died in the Soviet Union) (I'm from Seattle, by the way ;-), how the underlying loan payments are being made, the status of the person on the underlying note, you have to determine who is going to pay the excise tax on the transfer and of course you need to see the terms on the Lease to Own, etc.But, yes, it should be able to be done.

@Levi BennettI am far from being an expert.

@Jay Levy All very good points and insight.

Originally posted by @Jay Levy:@Chris MasonEvery market is different.

I am paying the excise tax based on fair market value.

We live in a state with excise tax, so we went in and made a deal with the owner that they remain in possession of property and we do all the rehab.

We live in a state with excise tax, so we went in and made a deal with the owner that they remain in possession of property and we do all the rehab.

Thank you @Levi T.

Bernie Sanders wants a 25% “house flipping” tax levied against investors who sell a property at a profit within five years of purchase.He also wants a 2 percent “empty homes tax” on the property value of vacant homes in order to discourage real estate investment.From Bernie's Website"When Bernie is president, he will:Create an office within the Department of Housing and Urban Development to coordinate and work with states and municipalities to strengthen rent control and tenant protections, implement fair and inclusive zoning ordinances, streamline review processes and direct funding where these changes are made.This office will convene key leaders, academics, experts, local officials, renters, tenants, and homeowners to create and implement these necessary solutions.Preempt laws that prevent inclusionary zoning for luxury developments.End exclusionary and restrictive zoning ordinances and replace them with zoning that encourages racial, economic, and disability integration that makes housing more affordable.Require that recipients of federal funding from the Department of Transportation and the Department of Housing and Urban Development make these important zoning reforms.Provide funding to states that preempt local exclusionary zoning ordinances to make housing more equitable, accessible and affordable for all.Make federal funding contingent on creating livable communities.Encourage zoning and development that promotes integration and access to public transportation to reduce commuting time, congestion and long car commutes.Prioritize projects that reduce greenhouse gas emissions, create walkable and livable communities, and reduce urban sprawl.Encourage zoning and development designed to expand and maximize the number of units fully accessible to people with disabilities.Place a 25 percent House Flipping tax on speculators who sell a non-owner-occupied property, if sold for more than it was purchased within 5 years of purchase.Impose a 2 percent Empty Homes tax on the property value of vacant, owned homes to bring more units into the market and curb the use of housing as speculative investment.Encourage “circuit breakers” on property taxes to protect homeowners in gentrifying neighborhoods from being priced out of their own homes as their property values rise.READ MORE: https://berniesanders.com/issues/housing-all/From my point of view, anything that impedes or obstructs REI's cash flow is a bad thing.

One must be a real estate professional to apply the material participation tests to rental real estate activities, otherwise the RRE activities are intrinsically "passive" regardless of participation level.NIIT is levied on specific income types under §1411(c).