• Rivalarrival
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    10 months ago

    Increase property taxes significantly, and provide an owner-occupant credit equal to the increase. If you want to rent out a single family home as a corporation, you are going to pay an exorbitant premium on your property taxes.

    Now, this doesn’t stop OP from making money on his investment: he can convert his “rental” properties into “land contracts” or “private mortgages”, which makes the “tenant” an owner or co-owner of the property, allows them to accrue equity, and earns the owner-occupant credit against the home’s property tax.

    This practice only works on a small scale. When large companies try to do this, they simply become traditional lenders.

    Set it high enough, and the only low-density rentals that will be feasible are duplexes, triplexes, and quadplexes, where the landlord lives on site to get the owner-occupant credit, and rents the additional unit(s).