May 02 '09, 07:07 AMThe house I just bought a month ago appears to be a good canidate do to a land contract sale. I walked into 30,000 to 40,000 in equity, but the cash flow is only ok as a rental. Somewhere around $50 a month. I typically like to to have around $100. I purchased with the intention of holding as a rental, but think I have changed my mine. My question is on a deal like this, how do you arrange taxes and insurance. Can I act like a bank and do an escrow account to ensure they get paid, or should I keep enough coverage for my mortagage holder, and make them provide me with proof of insurance as part of the note they will have with me? Then how do I do the taxes, as I do not intend to file a deed, I will be able find a buyer will to accept these terms, so that is not an issue.
I hope I posted this in the right place, but I figured here would be better than the tax forum.
Thanks in advance.
