Before I go pay for a lawyer, let's see what some TBN'rs (and CBN'rs) think.

I purchased two (2) seperate, 5 acre lots this year. They do not adjoin, but are in the same "subdivision". They were "owner finaced" meaning the developer holds the note. I hold title to each property with the developer as the lien holder.

I offered my in-laws the opportunity to purchase and place a mobile home on one of the lots. They currently live in a nice mobile home community. However, the lot rent continues to rise every year and is about to be raised to $300. I will not charge any property rental and will have a nice place to stay when I visit my tractor which already lives there.

Question: What is the most financially productive way to work this out for me? Do I charge rent (one dollar a month) and write off as a rental property? My father in law even suggested that he would "give" me the mobile home so that I could write the place off as a second home. Is it possible to be a co-owner of the mobile home while still being the sole owner of the property? Is there any advantage to that?

Does anyone have experience with re-financing of un-improved lots as that is one of my goals to lower my monthly costs. Can it be re-fied as a rental property? Or does the property have to be residential?

My goals are to:
1) Maximize the tax benefit from these properties.
2) Re-Finance to a lower rate.

Rick