All Forum Posts by: Roger Allen

Jason Wray, thanks for the response.  See-the seller and his family are asking $200,000 for 3 acres with a brick home (1600 sq ft, roughly) in condemned shape.  There is a mobile home there, as well, that a family member used to live in.  It has a fallen tree on it so it would either be work-in-progress or a haul off.  I have not seen property in this shape being sold for this amount in this area, nor acreage being sold for $50K, like he is selling.  I am wanting to move to this area for about 4 years so that my son can attend the school there.  With the asking price being that high and the house being in the shape it is in, I recently offered to live there, rent free, while I done the repairs.  I explained there would be a time schedule of the needed repairs.    Of course, I would like to purchase the property, but this won't be my forever home.  This little town is growing very rapidly.  He was very concerned at the capital gains he had dug into.  My alternative motive would be if he were to allow me to move in and do the repairs, and I were to be able to convince him to owner finance to me, how would the capital gains be calculated at that time?  Would this help them from paying the capital gains, since it would be strung out over an amortization schedule?  They are not into real estate so I am sure they are not looking into the 1031.  They just want to sell their inherited property.  I would like to own the property, just not at that price point.  I have other rental properties as well as my new wife has her property we will move back into once my son is done with school.  So, buying this property at a bad price just to sell in 4 to 5 years is not an option I would do.  It is looking like my best bet is to just live there and do the repairs and in 4 years, let them have the house back.

Hello BPers. I have a guy that is selling his property he inherited from his grandfather (found it by driving for dollars). He passed about 15 years ago and the house has been vacant the entire time. It’s on 3 acres with a single wide to the side (also very distressed-probably needs to be hauled off). He has been looking into the capital gains and not very happy. I understand the house is adjusted at the time of inheriting it. What is different from the other questions on this topic is that the property itself is in rough shape. I would have to do a complete rehab, including a new HVAC unit. If owner financing were to be utilized, since the house needs so much, would this not offset some, if not all capital gains? I know the land has increased in value, but the structures definitely do not add to it as a normal, upkept property would. Thanks for any direction. Just looking for more options to persuade the seller into owner financing.

*gantt chart... Works better if I spelled it right.

I believe you may be referring to a ghant chart.  I, too, am searching for this chart through the forums, just for an idea of how it was used by the person that was interviewed.