Consult a lender to determine the best option for your goals.IF you want to preserve section 121, you should think abt selling your hour to S-corp.

Your success in real estate will be determined by you ultimately.

I personally like to look at every investment opportunity for the viability of the investment and then determine if better for Self-Directed IRA/401k, or if better for non-IRA funds.

Whether it be a real estate deal or a note deal, we always determine multiple exit strategies and what the downside risk is before making an offer. 

It's essential to determine your long-term goals and decide whether cash flow or long-term appreciation is more important.Good luck!

You need to determine if you want to prioritize cash flow vs appreciation.

Hi Brian,You're on the right track, but to determine if you're truly generating cash flow, it's important to look beyond just your mortgage payment.Here's what to consider:Income: You're receiving $2,100 in rent, which is great.Expenses: Besides your $3,232 mortgage, you likely have other expenses like property taxes, insurance, maintenance, utilities (if you cover any), and potential vacancy costs.If your total rental income exceeds all of these combined costs, then you're generating positive cash flow.

It allows a substantial portion of the asset's cost to be deducted in the first year of service.In 2023, the bonus depreciation rate is 80%.In 2024, it decreases to 60%.In 2025, the rate further reduces to 40%.COST SEGREGATION:Cost segregation involves dividing a property into its individual components for tax purposes.Some parts age faster, like carpets or paint.Your CPA can use this info to more accurately depreciate elements of your property leading to potential tax savings.BASIS:Your basis is the initial price that you paid for your property, including any expenses or improvements.Knowing your basis is crucial for tax purposes, as it's used to evaluate depreciation & determine the capital gains or losses if/when your property sells.LAND VALUE:This is how much your land is worth without any buildings or improvements.Land doesn't get old like buildings, so you can't depreciate it.

In the area, we determined that the it would be a good mid term rental and started marketing it as a furnished rental especially with some of the construction and events going on throughout the year.

If it's 1-4 units, then you'll need to look at comparable properties, but with 5+ units you'll want to determine the future value with NOI and cap rates.