A practical step today is start underwriting 20 to 80 unit deals and build a track record plus broker relationships, because that is what gets you taken seriously when you pitch equity.How big of a complex and price range are you looking at in Indy, and do you have any net worth and liquidity to satisfy loan requirements even if you do not have the down payment?

I am looking to relocate to one of those 2 locales, so I thought I should start investing there.

It’s affordable and super practical, and the people there are really open to helping newcomers get started. 

Where investors get tripped up (common patterns): Using debt leverage in private real estate or partnership structures Owning private equity or operating business interests that generate ordinary business income Failing to track and trigger Form 990-T as requiredDocumentation reminder (education-only):Maintain income characterization support and coordinate with tax professionals before and during calendar year reporting if you suspect UBTI exposure.5) Practical ChecklistBefore adding private equity–style exposure or other alternatives to your SDIRA: ☐ Confirm that the asset type is permissible for SDIRAs under IRS guidelines. ☐ Ensure entity documentation clearly names the SDIRA as the owner. ☐ Identify whether the investment may generate UBTI/UBIT. ☐ Coordinate with your custodian/administrator on valuation requirements. ☐ Review compliance risk related to disqualified persons and prohibited transactions.6) What We’re Watching Further IRS guidance on safe harbor procedures for rollovers and RMDs in 2026.

Here’s how I usually suggest people think about it when starting from scratch, based on what you’ve been circling around in your advice:Start with education, but keep it practical.

In states like NC, the strategy doesn’t disappear, but the execution changes.In practice, most experienced investors aren’t “getting around” the law.

Quote from @Madeline Holland-Jackson: Loan guys is a third party loan processor that engages in fraud and predatory lending practices.

This seems like a common practice, and am new to all this.Any insights would be appreciated!

@Pavel Voroniuk thank you for teaching me a new concept that I am going to put into practice immediately.

Your table shows the right concept but a couple practical adjustments: for STRs specifically, the 25-30% reclassification range is pretty standard for typical single-family properties.