All Forum Posts by: Andrew Riggs

Laminate flooring needs to expand and contract with temperature and humidity. If you frame on top of it, you're essentially tying it together with the walls and it won't expand or contract correctly which can lead to buckling.

Would a Self Directed IRA be subject to UBIT if I invested in an apartment building with 2 partners, all bringing equal equity and no debt to the deal? Example, the 3 of us form an LLC, buy a building, I use $60K of Self Directed IRA funds, they use cash or their own Self Directed IRA funds as well. We wouldn't finance anything and just put profits back into the LLC or pay dividends, which my portion would go back to my IRA. The other option is to buy a SF home in cash and rent for a year, then sell and reinvest in SF or small MF.

The biggest difference here is that the Auditors office shows $0 as the transfer(sale) price. If it is reassessed, it likely won't be reassessed at the sale price, but rather at a nominal percentage, think 2-3% instead of double. You purchase the Entity(LLC) in a stock purchase agreement. Once you own the LLC, you transfer the property, which you also own, into your own LLC, then the original LLC is dissolved with the State.

@Mayer M. I think there are a lot of details missing. What level of finished product are you going for? What about windows, doors, electric, plumbing, kitchens, baths, floors, fixtures, appliances? You'd be lucky to get by with builder's grade at $75/SF, especially with a sprinkler system. I have supplied several projects like this in downtown Cincinnati and for a good quality product, you would have to spend $150-200/SF for material and labor. I'd budget $300K+ for a full rehab, especially if you're using a GC. Remember, you've got 4 electric meters and panels, 5 bathrooms, 3 kitchens, 25-30 doors, fire separation, etc.

Thanks Brian. Good advice. 

I recently rolled over a 401K to a Self Directed IRA and have an opportunity to buy a house in a somewhat rough area, but a solid house with good rental potential. It's $33K and needs $7-10K with an ARV of $55-60K. The seller has a family interested in renting for $1,000/mo. It would cash flow around $700/mo after taxes, insurance, and deferred maintenance. Since there's not a lot of upside equity potential, would you buy and hold and keep generating $700/mo, or establish a good rental history and sell it off for $60K in a year or so, potentially putting $28K in profit back to the IRA?