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Big Daddy Of All Real Estate Tax Breaks!
By Mark Walters
Apr 26, 2005, 13:37
Everybody should know that under current tax law you can sell your primary residence and any capital gain up to $250,000 ($500,000 if married) is tax free.
Wow... is that powerful!... and why aren't more investors taking advantage if that "loop hole"?
The only requirement is that you live in the home for 2 out of the last 5 years... and it is your primary residence. That means you just must live in the house 24 months to get the tax savings.
What if you match that tax break with a FHA 203(k) loan?
More below...
Your heart should begin beating faster if you understand the 203(k). Look at the features of this real estate loan...
FHA down payment (3%)
Flexible credit qualifying
Assumable loans
Finance up to 6 months of mortgage payments
Purchase or Refinance AND IMPROVE all in one loan
Upfront mortgage insurance waived
Get it?... One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.
Cheap, easy money that not only gives you the ability to buy the home... but also the money to rehab it... all in one loan!... with no payments for 6 months!
The FHA 203(k) loan is available to borrowers of all income levels, but only to homeowners who plan to occupy the property, and for homes with one to four units.
Types of 203K Loans:
30 or 15 year fixed rates
One year ARMS
Assumable to a qualified buyer, with no money down
Eligible Properties:
Single family dwellings
Condominium
Townhouse
Mixed Use (Storefront)
1-4 Unit buildings- you can increase or decrease the
number of units with this loan.
With some leg work you should be able to find properties that will allow you to bank $50-thousand to $100-thousand at the end of every two year period.
The two year holding period gives you time to do the rehab work.
Hey, you gotta live somewhere. Why not turn your home into a money machine?
About The Author - Mark Walters has written
"The Complete Guide to Judgment Investing".
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Buyincomeproperties.