All Forum Posts by: James Sebastian

Note that the UBIT / UDFI tax rates get real serious real quick

I've been involved in several deals where we used the listing agent and they worked out well, gave us a leg up on the competition. BUT, these were low $$, needed a ton of work so hardly enough commission to split.  Also we have enough trade experience to perform most of the inspection functions ourselves, and expected to replace many of the systems. Will probably get burned eventually but that's part of the game.

It might be like using both SDIRA funds and personal funds to esablish a seperate SDIRA.  I've read that this is OK on startup, but then neither "partner" can put in additional capital, and the combined entity has to hire out all work, like a pure SDIRA investment.  That said, I wouldn't tread this close to the edge of the cliff myself...

I formed a partnership LLC between my SDIRA and an up-and-coming investor wannabe. He does the work, I provided capital. It's been a pretty good couple years, he's not a wannabe anymore and my valuations has grown substantially. Just another option.

I've done a couple DIY fix-up rentals and the guidance has been that everything before they are "placed in service" (meaning ready to rent or otherwise earn $$) is rolled into the basis.  I would research your situation from that angle.

I've had a SD IRA with RocketDollar.com for a couple years, I have the low plan but they have been responsive thru email when I need help or have questions. Full disclosure, I picked this one because at the time I was able to make a small crowdfunding investment in the company for reduced fees, so I'm only 99.99% a disinterested party.

I rented a detatched garage while I was (slowly) rehabbing a house.  He paid for a little while, eventually left me with a junk car inside, a junk car outside, and other crap to clean up.  I'd probably try it again, but better vetting of tenant and no, it's not OK if you "work on cars" there!

I second the copper sufate.  Comes in crystals, available at hardware and big box home improvement.  One brand is Zep Root Kill

It's all spelled out here  (Indiana code Title 32, Article 31):

https://www.lawserver.com/law/...

I've been doing this with my daughter for two years now, no keggers and they take good care of it.  Our arrangement is that she's on the lease like everyone else, and we give her a gift/rent forgiveness letter each year.  For the financials, I decided to treat 75% of the 4 bedroom house as a rental (depreciation/expenses/income etc.). If I keep it I'll place the other 25% "in-service" after the kids are done with it.  Bought it several years before she needed it as a near gut job, did a cash-out refi this year and pulled out 200% of what I had in it (excluding labor).  Gotta love appreciation + cash flow!