Essentially, the portion of the property’s income considered UDFI is based on the percentage of rental income derived from debt.For example, Property A is purchased for $100,000.

Because each vacant property could have differences that are difficult to adjust for, I view vacant sale comps as a secondary check on the value derived from the method I first described.

Except as otherwise provided, gross income from whatever source derived,what possible exception would it fall under?

I’m very grateful for the knowledge I learned there but it’s surprising to see how REI is simply skimmed over during an Investments course, yet, they have an entire course called “Derivatives.” 

The Solo 401(k) also has the advantage of being more favorable for real estate investments using debt-financing such as a mortgage - as the 401(k) is exempted from a small tax called UDFI that an IRA would pay on the percentage of income derived from the borrowed money.So, as you continue your research and get feedback here on BP, think about what type of program will best suit you needs and be sure to ask questions along that line.

Unlike an IRA, there is an exception to UDFI for income derived from real estate owned by the Solo 401k and acquired with non-recourse debt.

They come out of Gross Scheduled Income to derive Gross Operating Income. 

What really matters is the full comprehensive analysis which includes the initial Investment ($68k in this case), all the cash flows in the holding period, plus the cost to sell the property at the end of the holding period.Those of us who do the calculation will use the Internal Rate of Return (IRR) or some derivative of that calculation.ROE does not take into account the Expense of the Sale nor the purchase price of the new replacement investment on the switch.

Your investing strategy should be derived based on what it your main goal at this point. 

Always take a flash light, and always spend the most time in the basement (if it has one) as that is where often the issues, if any are derived from.