I'm a new investor with a career in CPG (consumer packaged goods) sales and distribution.

That tax savings is re-invested/distributed to charity and can be used to purchase a very large life insurance policy that serves as the mechanism to replace the wealth that you donated to charity.

Or you find out that your PM found his wife under the keyboard player of an 80s cover band last week and is locked up for ag-assault in the county jail for thirty days with no one available to collect rent or continue the process of evicting those people on Center St. who might or might not be running a under-the-table daycare center/illegal pain pill distribution center out of your property...Does your whole house of debt collapse because Murphy wasn't in a good mood this week?

Pay yourself a modest salary and the rest as profit distribution.

You then can take distribution from the IRA, subject to income tax and penalties if you pull the funds early. 

Hi BP experts and PMs,I am in the process of trying to close on a Rental duplex in Tampa ,Florida. I heard that self managing the rentals for a while helps build experience and truly understand what PM's face ,but I h...

There are several techniques but ones related to your question:1) Doing a Lease Option with the seller gives you equitable interest in the property and you can market the property for sale or for a Lease Option for a period of time shorter than your Option.

Also not sure why you think I would have some creative secret - pretty much every investment technique can be googled now a days.So I was just curious if there was some hidden meaning.

For example:Purchase Price: $200,000 ($55,000 down)Renovation: $40,000Total Acquisition $240,000Cash Out of Pocket $100,000 (your money)Holding Cost: $5,000 for 6 monthsSelling Price: $300,000Cash Distribution: Selling Price - Loan - Renovation - Down Payment - Holding Cost = $55,000Your 4% (8% for 6 months on $100k): $4,000Remaining: $51,00050% = $25,5006 Month Return = $29,500/$100,000=29.5%

Patrick,if you are taking a distribution from your inherited IRA - you will be taxed on the entire distribution amount.