My stepmother was given a life estate in my father's house in TN. The house was to go to me upon her death as stated in his will. He passed on and she lived there for 25 years. She had to go to a nursing home, so she turned the house over to me through a quick claim deed.

Now, I'm thinking about one of two things. First if I sell it, I will have to pay income tax. Secondly, there is a person who wants to purchase it through a land contract. I'm very unsure about the land contract, because I'm not too familiar with it. Also, I would like to purchase another property, but if I do the land contract, I will not have the money to pay down.

Which would be to my advantage, selling it straight out, or land contract? I'm thinking in terms of having to pay income tax and, of course, the puchasing of the other property.

Fr_Chuck

Think of a land contract sorta like a rent to own plan where you buy a couch or bedroom set.

But on most land contracts you require them to put a down payment on it, not merely a small amount but on a 100,000 house I would want a min of 10,000 and alittle more if I could. I normally try to get 10 percent at least.

But people buy "normally" but not always on a land contract because they have bad credit and the odds of them keeping the house is slim, and you make your money by reselling it several times on land contracts. Not all of course, I do it sometimes on homes I plan to flip, but I make sure there is a early pay out or buy out clause so I can sell the home and do a close on it.

But ifyou are not close to this house to keep a check on it, and to fix it if they move out in the middle of the night, I would consider selling it out right,

** I am in TN and often do land contracts to sell properties. and sometimes I buy a few that way