OfflineI purchased my house on Feb 17th. 2010.
I used the first time home buyer tax credit and received my rebate.
It is a 2/1 and we are getting ready to have our second child and the house is too small.
I would like to rent it out or sell it but according to the info I was given, the house must be owner occupied until February of 2013 or I have to pay back the money.
Is there any way I can get around this and not have to pay back the money?
I need a three bedroom house and I would like lower payments than what I am currently paying.
Suggestions please!
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"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
Do a 2yr lease option.
It is kind of a moral issue. You can rent it out and nothing happen good for you. If something goes wrong you pay back the money. If you sell it you do have to pay the money back.
Steve.
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
I can do a rent to own and not have to pay back the $8k?
That is still considered owner occupied even though I am not living in it?
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"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
is just what that means.
However, people do what you're suggesting all the time without any problems due to the fact that the mortgage company does NOT have time to see who's living in the properties.
$8k roll of the dice, but, ppl are doing it without a problem.
Congrats on the 2nd child.
Mike
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Yes it is done all the time like Mike says. Or you can just sell the house and add in the 8k onto your price and pay it back. Speak to a REA or your tax guy and see if there are other options.
congrats and good luck
Richie
Pay the 8k if you are supposed to.
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10
If you turn the property into rental property it triggers a disqualifying event and the whole $8,000 must be paid back on your 2011 tax return. No exceptions. Of course, check with YOUR tax advisor.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
That is why I said it is a moral issue. You can rent it out you may not get caught but if you do, you have to pay back the 8k. Do you have the 8k to pay back if you get caught. Or is the rent income going to cover 8k in a few years.
Welcome to life Lane it is a fun ride you will do well with what you decide to do. Take care of your family is the most important thing in life.
Up till I was 5 we lived in a 2 bed room house with 5 kids. I think we came out fine.
Good luck Lane.
Steve.
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
for you to read:
http://www.irs.gov/pub/irs-pdf/i5405.pdf
There are some exceptions, but most of them probably won't apply to you.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
'Hypothetically', you could;
Do everything mentioned above. And yes it might be where you don't get caught, but if you were to have to refinance and the bank comes to the house to do the appraisal and notice that you in fact do not live there....
Or if an emergency happens at your house and the insurance company does a report and when Jim and Sheryl Madison, tenants, comes up and when the bank gets the report and notices you and your wifes names are not......
Or the underwriter for the insurance company you have your policy with notices your names aren't in the report and that your policy is for a owner occupied because you got a discount for it and when they ask you.....
It happens all the time. Just decide if its justified enough for you to do it too.