Converting the entire property to a rental later allows full deductions but eliminates primary residence tax benefits, potentially increasing capital gains taxes on sale.

Example $400,000 no debt.2.  

.: Quote from @Chris Seveney: @Dana YobstBlows my mind how he is out there still teaching classes and going on as nothing happened but it sounds like these debts are not getting substantially paid down.As many of us know, one of the main reasons he's able to continue on is with the help of this other self proclaimed criminal https://weclosenotes.com/ep-nc-03-protecting-yourself-using-a-corporate-veil-with-aaron-young-from-laughlin-associates/ Using a remote entity to limit liability is a life blood of insuring investment into all types of job creating, life saving and life improving business development.  

The reason is I want to separate my personal debt to income ratio from my real estate investing “business” and of course reduce personal risk. 

The tax debt was about $7k on the property. 

For my commercial properties, I refinance every five years, allowing me to continuously access the equity as long as the cash flow can support the debt service requirements.

.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

If you use debt to buy the real estate the IRA will incur UBIT so educate yourself on that. 

Quote from @Sonja Revells: @Chris Seveney primarily Padsplits  I would speak to a few lenders first before going through all these hoops, as I started to do this then when talking to banks they were basically telling me either get a secured mortgage as they will not lend to a real estate company on unsecured credit/debt.

I have some previous business debts to payoff, so once all the dust has settled with realtor commissions and other closing costs, I'd have roughly $400k-500k of cash at my disposal.