All Forum Posts by: Todd Goedeke

@john 

@John Underwood, you are confusing UBIT with UDFI. UDFI refers to using debt financing in an IRA. UBIT is still generated in a Solo 401k as in an IRA if you self manage a STR. If you don t believe me ask this same question in the Solo 401k/IRA forum. The tax attys. there constantly remind people of UBIT from running a STR business. UBIT is not generated if a property manager or host handles all activities running the STR business.

@Alina Trigub, its interesting how people like Damien with no professional training think they have the "answers" that specialists like Brian E, Justin W., and George Blower don't have. Readers beware of whose advice you accept.

@Daniel Pitner what is the value of the property that went live? How many beds/baths? Is your cash flow net after all expenses including debt service, RE taxes and insurance?

How many beds/baths? What is nightly home rate for configurations having same number of beds/baths as yours?

What is your ROI net of all RE taxes,mort. interest and other expenses?

@Luke Miller, tell us the difference between a Solo 401k and a eQRP? I have been told by a tax attorney there are none.

@Julie McCoy, her reply made it sound she was. Good to hear she is not.

@David Sosa, check with Solo 401k providers. Investors with retirement plans, especially Solo 401ks and IRAs can t manage their own properties if held in a retirement plan or it will generate UBTI. Therefore property owners ,retirement account investors ,lease at 8-10 CAP rates. Lease payment/property value= cap rate in this scenario. A 10 CAP= $20,000 lease payment on a 200k property. Taxes, insurance and maintenance are negotiable items in the lease.

Find a property manager who has experience and confidence where they will sign a lease and pay you fixed amount.They also furnish the property to achieve highest occupancy.

If you are a person/professional who values your time and does not want to spend free time running a STR/STVR business hire a manager who will lease from you. Have them pay all RE taxes, insurance, and maintenance. Sit back and collect your checks.

@Andres Garcia I agree with @Jacob Sampson, what is asking price? What is the cap? Take the bed/ bath number and compare to Airbnb rates in the area of property in question. Can you market property to get 60% occupancy at those rates? Are you prepared to run a STR/STVR business?

@Karen Chenaille, If you are self managing a STR or STVR held in an IRA,ROTH IRA or Solo 401k are you aware that the activity constitutes running a business? It generates a UBTI tax. Contact an IRA or Solo 401k provider regarding the regulations.

I know of many STR and STVR owners who avoid the UBTI tax by leasing their property,triple net at cap rates of 8-10.