Seller finance with AITD or keep as rental?

Question

Bought this 3/2 in Modesto, Ca in 2008. I planned to keep as a rental forever and now thinking about selling with wraparound mortgage. Breaking even right now on the cash flow. Rents haven't moved in 6 years. Would like to use equity to purchase another rental. HELOC will only get me about $20k. Selling could get me $30k and a cash flow, but I lose some of the tax benefits. What do you think?

FMV: $180k

Mortgage: $121k

Rent: $1095

Payment: $616

Tax/Ins/Prop Mgt.: $280

FMV: $180k

Mortgage: $121k

Rent: $1095

Payment: $616

Tax/Ins/Prop Mgt.: $280

Jeff B. · Answer

@Brian Gibbons  nice reference on AIDT :-)

Bill Gulley · Answer

Like I said, I hadn't had my coffee, after coffee with your mention I knew what the AITD was in Cali.

Not sure what the lawyer had to say, but make sure the seller has a lien or deed of trust to fall back on with foreclosure terms stated, otherwise it's a judicial foreclosure. :)

Brian Gibbons · Answer

@Bill Gulley

AITD is a wrap around mortgage

Good RE Article from a CA Attorney.

http://www.calrealestatelawyersblog.com/2011/08/te...

Paul Murch · Answer

AITD is All-inclusive trust deed...sometimes called a wraparound mortgage.

I am in Hawaii now. Will be back to CA as soon as the Navy lets me.

I am trying to decide which. That is the point of the post.

Looking for another rental in same neighborhood.

Bill Gulley · Answer

What is AITD? I'm up earlier than usual and haven't had my coffee yet, but not registering what this has, or is.

I'm seeing that you're out of state?

So, stated your plan to keep it, but you want to sell now, want a loan for the equity, which is it?

Where is the property you want to buy? Found one or looking? :)