You will run into an issue of transferring the funds out of the S-corp if you basis is zero.Profits increase basis.Adding money increases basisTaking money out decreases basis.

In Tarrant County, sellers always retain minerals, and as you can imagine, people buy homes there every day.

Your biggest worry will be the difference between your adjusted basis and sale price.

But is the concept the same in that an interest only loan is still calculated on a 12 month basis (unlike "simple" interest calculated on a daily basis)?

He will assume a much lower cost basis for depreciation, get whacked on additional capital gains when the LLC sells the property, etc.

Listen to it while I'm driving to and from work every day.

"Out lot" sales in a commercial shopping center can be 3 or more years out requiring the all kinds of contingencies.Extending purchase agreements happen everyday, while the term of an extension is usually a few days or a month, there is nothing preventing an agreement to be extended for a longer term or as to any right or option to extend a purchase agreement.One and the main difference between the two contracts is that an Option does not (for a true Option) require performance by the optionee or buyer and a purchase contract requires performance by both parties, bi-lateral and uni-lateral agreements.An option may not have any default provision for performance as exercising the option is up to the buyer, the purchase agreement requires performance and carries penalties for non-performance.

They are open nearly every day.

And if the return is to be maximized on a 12 week basis, then you rent all 12 weeks out and only use for personal use during the other 40 weeks of the year.

If it works out it seems it would be much smoother to simply tap a credit line rather than having to qualify loans on a per deal basis.