Hypothetical Rental Business
So i'm just throwing around some ideas...
I just recently bought a house that has a possession date for May. As a condition for getting the new mortgage, I have to sell my current condo because I can't currently service two mortgages. I would like to keep my condo as a rental property, so I'm wondering if the following is possible?
Can I start an incorporated business and "sell" my condo to the business? I would be triggering capital gains for myself, however the condo would then belong to the business and not me. Would that effectively remove the mortgage from my personal debt servicing? What are the requirements to get a business mortgage to buy the condo? I currently owe 190k on the condo and I estimate the market value to be around 245k. (i will of course get an appraisal if required). Is this possible?
Last edited by w0nger; 2012-10-08 at 07:19 PM.
No: as a new corporation, you wouldn't be able to get a corporate mortgage, so you'd have to personally guarantee it or have cash in the corporation to buy outright, which doesn't get you out of your current situation.
Nailed in one response . . . enough said
Originally Posted by Potato