Here are exemptions to Due on Sale(d) Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon— (1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property; (2) the creation of a purchase money security interest for household appliances; (3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety; (4) the granting of a leasehold interest of three years or less not containing an option to purchase; (5) a transfer to a relative resulting from the death of a borrower; (6) a transfer where the spouse or children of the borrower become an owner of the property; (7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; (8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or (9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

If you structure it via equity rather than debt, you can get very creative with the entity's operating agreement and you can allocate more depreciation to this investor to help him with his tax breaks.

It is 48 +/- acres zoned C-3 with water and sewer allocated.

Also, consider that if you’re properly using asset allocation, you’re not going to drop your whole nest egg into one project.

I dont necessarily allocate any dollar amount to a reserve for each property.

I also do the pro-rata allocation like others for general items not attributed to one property.

Make sure you are certain of the expenses you are responsible for if not paid directly by the tenants to the service providers - you will need to have an appropriate allocation approach and lease provisions to manage that.

Allocate capital accordingly to each property so that you can have them paid off on a 15 year note and have the cash flow you're looking for.I can't really comment on your inside or outside of the SDIRA question...that sounds like something a CPA would need to advise you on.Best of luck!

I am weighted more towards debt and preferred equity deals.So far, only one investment is not performing, and in that situation, it is some weird internal situation (too many cooks at the sponsor) and from what I can tell, not a problem with the actual property.These investments were a conscious decision for me to allocate away from my stock portfolio and after I made the first couple of investments, I decided that the only way for this to make a lot of sense was to get a big portfolio fast in different cities across the country.

The expenses are allocated to the PM (and other vendors like tax, insurance etc).