Sub to...and the tax of...

[Ryan Taylor]

Good morning fellow investors....

So I am in the process of putting together a sub to deal...here Is the structure

347k purchase price...147k owed @3.750...I'm assuming the 147k...borrowing the remaining 200k @ 3% from the seller for 5yrs...ARV of approximately 435k with approximately 35k in cap ex...not a whole lot of meat on the bone...but this is a buy and hold strategy for appreciation...as well as cash flow...my question is this...

Since the 1st is still in the name of the seller, and me as the buyer being on title...from a tax stand point...who is able to depreciate the property...write off the interest on the 1st... and as it would be a rental...the expenses...

Thanks for all advise 🤙

[Ashish Acharya]

You get to depreciate and you deduct the interest on all the loans.