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In NC, how long does it take for income from a rental prop to be considered income instead of debt?

I am in the process of taking over the rights to a house in NC to use as a rental property.  The current owner is going to continue to hold the mortgage while i collect the rent.  The rent will go to the current owner to pay the mortgage and i will keep the additional income each month.  How long do i have to show that this house will be an income and not an additional debt if i apply for the mortgage in my name?

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March 01 2011 - Raleigh
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Answers (3)

Please don't tell me you are going to do this.  I am not an attorney and can not give legal advice.

This sounds like just the thing that got so many people in trouble with the NC Attorney General a few years back.

If you are suggesting taking the property 'Subject to', then I implore you to not do so.  If the owner is going to sign the deed over to you, while you rent out the house and collect income, please see an attorney immediately.

If I am wrong, then please ignore what i said, except for the part about not doing this.
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March 01 2011
Unless you are structuring a PURCHASE of the property you are gaining no equity and have no right to claim the mortgage interest OR repair and maintenance costs.

Find an attorney who knows about wrap-around mortgages and how to structure one for your benefit.
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March 01 2011
That is a little too complex for a casual answer and you might not want to rely on it too. It might be worthwhile to pay to consult a accountant/RE lawyer to make sure everything is fine.
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March 01 2011
 
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