Understand what you are buying
You buy the home and lease its homesite. Purchasing a home does not give you a deed to an individual lot. Any company-equity purchase bonus is established in a separate written agreement and should be reviewed on its own terms.
Review the current purchase bonuses, including six months of free lot rent for an eligible new-home purchase. Regular lot rent is $550 per month afterward.
Build a complete operating picture
- Home price, delivery, $8,000 setup, optional A/C, upgrades, taxes and fees.
- Loan payment and any lender charges.
- Ongoing lot rent, insurance, utilities and taxes that apply to your arrangement.
- Maintenance, repairs, vacancy and any management costs.
Rental income, occupancy, resale value and returns are not guaranteed. Confirm who pays each charge in the community and rental agreements. Review the full purchase-cost guide.
Ask for investor financing
Cascade’s primary-residence path is for buyers who will live in the home. Investors should ask Pine Forest for an appropriate backup lender. Backup options 2 and 4 include investor programs; terms and approval depend on the lender.
Request investor financing options
Compare the financing paths before committing to a purchase. Pine Forest and the lender must confirm pre-approval, deposit, delivery and funding requirements.
Discuss depreciation with your CPA
A residential rental home’s structure generally follows a 27.5-year depreciation schedule. A cost-segregation study may identify components eligible for faster depreciation. Your specialist and CPA confirm the classifications, eligible deductions and what you can use in a particular tax year.
Pine Forest may have a study for the same model that can be reviewed and adapted to your purchase. A new study is estimated at $1,000–$2,000 for planning purposes; request a provider quote. Ask your CPA to compare the potential benefit with the study cost.
Tax deductions and savings are not guaranteed. IRS residential rental-property guidance.