While it's generally one step up the capital structure from rents and mortgage payments, they aren't seeing mass non-performance either:This top-line performance is supported by strong fundamentals, with a number of our stabilized properties actually experiencing positive rent growth in spite of the larger economic contraction.We attribute this success primarily to having maintained a disciplined value investment approach, led by our most active strategy of owning and lending to affordable apartment communities in growing cities throughout the Sunbelt.

This has nothing to do with renovations to increase rent, this is the natural gain attributed to a growing economy.

In addition, if you are self-employed with no full-time employees you may wish to consider opening a Solo 401k instead of a self-directed IRA as it has several advantages over an IRA LLC such as much higher contribution limits, direct checkbook control (i.e. no need to have the account at a specialty trust company), ability to take a 401k loan, exclusion from unrelated debt finance income tax with respect to investment in real estate acquired with non-recourse financing, etc.In addition, please note if you purchase debt-financed real estate with your IRA, unrelated debt finance income tax should apply to the income attributable to debt-financed real estate held by your IRA.

All have good attribute and bad so here we go. 

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.

I am trying to figure out the important attributes to look for such as school district, proximity to freeway etcAlso, do let me if you have any tips on specific attractive zip codes or neighborhood.

"(5)Limitation on deductions In the case of a use described in paragraph (1), (2), or (4), and in the case of a use described in paragraph (3) where the dwelling unit is used by the taxpayer during the taxable year as a residence, the deductions allowed under this chapter for the taxable year by reason of being attributed to such use shall not exceed the excess of—(A)the gross income derived from such use for the taxable year, over" - Found itThank you for the advice, and referencing the relevant IRC sections.There isn't a lot of guidance, and I was using the guidance given from the biggerpockets blog to calculate those expense ratios - so seems to me there isn't great consensus or just a lack of knowledge on this issue in general.Blog link: https://www.biggerpockets.com/blog/2016-02-21-tax-implications-house-hacking"If you have a single family home, you can either divide the room you occupy by the total number of rooms (rooms include beds, baths, kitchen, living room, dining room, etc.) or the square footage you occupy by the total square footage.You will now have a percentage of the home that you occupy and a percentage of the home that you rent." 

In addition to what others have mentioned regarding a shift from fly away destinations to driving destinations, I attribute a large amount of the uptick to a reduction in inventory.  

How does one determine how much should be attributed to the rental unit?

If debt-financed real estate is acquired via an IRA, any income attributable to such investment will generally be subject to unrelated debt finance income tax.5.