Owner Financing- More than just the basics
I think I have a general understanding of owner financing. But have some more detailed questions:
-If someone has a small balance on their mortgage payment and there ARV is much higher is it still possible to do owner financing? I know you could pay off the portion but let's say it's higher than what would make sense. For example they owe 70k and the homes ARV is 300k.
-It sounds like part of the appeal for someone to do owner financing is the potential tax benefits. What’s to prevent a investor from coming up with a 10 year payoff plan and then refinancing about 3 years out and paying off the note early? I would assume that this would hurt the original owner since they would be hit with the taxes at that point, correct? However, wouldn’t the owner be penalized with the taxes at the 10 year mark regardless?
Thank you all for your help in helping some better understand the questions above. Thanks!