Sale price for homes upon completion of rent credit program


When someone completes the rent credit program and it’s time to transfer title, what purchase price does one use on the title?


Claim zero, because that is what you received for turning over the title to them. You received monthly payment from the tenant but that was for letting them live in the home for each month, while you paid for the taxes, insurance, repairs and make-ready on the rental homes that did not make it to the end of the rent credit program. Saying you sold it for a big $0.00 reflects the reality of the situation; you had an asset worth – what?, let’s say $6,000 – and now thanks to the brilliance of the rent credit program, you never got your $6,000 of capital back.

I am thinking of going one by one to my renters and telling them to buy or move out so I can put the home for sale on the market. I will make it so it will not cost them anything more then they are paying on the RCP, but I hate seeing the erosion of the capital I have in my POH stock due to the damn rent credit program.

Why wouldn’t you use the price from your Rent Credit Agreement with the tenant? These forms come with the MHU Home Study Course.

If you sold it for $0.00 then you can write off the basis of the home as a long term capital loss, which in fact it was.

Sounds like a rent to own disguised mortgage, but it’s an option. This isn’t rent credit.

I typically tell folks, “Rent this house and the space for 36 mos. and we’ll just give you the house.” Need to make sure they can afford it under the SAFE Act: Letter from a mortgage broker saying their debt:income ratio is less than 42% should suffice, but I also make them show me a monthly budget that shows they have at least $100/mo. left over for emergency repairs.

How do you get that letter from a mortgage broker?

Why not just give them the home? Seriously, they will love you forever and you’ll have a park that’s one closer to being stabilized.