In the TBer's Purchase Option Agreement, the rent credits are credited towards the option fee.This money is then credited towards the tenant-buyer's down payment at the time of closing.If the tenant-buyer fails to exercise their purchase option, the option fee, including the rent credits, are forfeited.Market Rent And Down Payment CreditsIt is important to understand that only the portion of the monthly payments that is above market rent can be considered as a rent credit towards the down payment.

Just about every portion of real estate investing today has been regulated, lawed to death, rules, etc. etc. etc. etc. and it has made it much harder for the honest RE investor to make a buck - all because of one or two crooks/idiots in each instance.Today, you can not assign a contract to another buyer and have their lender include the assignment fee in the purchase.

The unrecaptured depreciation on the relinquished property is simply transferred to the replacement property, where it will be taxed if the sale of the replacement property is a taxable event.Should you ever wish to exchange a fully depreciated property, then there would be no depreciation basis for the replacement property, for that portion of the replacement property's cost basis transferred from the relinquished property.

Most will not do this as they would not want to risk losing a license over 1 sale.Anything in writing would leave a paper trail too, so how do you guarantee yourself your portion?

Perhaps he/she is not interested in that portion and would love to dump it.

The difference of over $1000 per year eats up a HUGE portion of my cashflow, and is actually about the same as I'd lose in depreciation each year under the ACV.

How do you go about acquiring an investment property through an LLC if you want to finance a portion of the purchase?

If you are not offered immediate cash for the assignment you should get more, as you are being asked to forgo and forbear the use of money, plus, in effect, the buyer is asking you to retain a portion of the risk.

You'll pay depreciation recapture tax on the portion of that gain up to the depreciation you took or could have taken, then capital gains tax on the remainder.

Not to say there isn't a place for stocks in a portfolio but there is also a place for real estate, generally people lack the portion of real estate invesments in their portfolio to diverisfy.