You have many issue regarding the IRS guidelines where you can find yourself in gray areas, you lose the depreciation tax deduction which is a huge benefit to holding RE (the IRA is already a tax deferred account), and there are several other disadvanatges.

There are people here who are awefully quick to give black or white answers to a very gray area question.

Texas will have the number one running back (Jonathan Gray) in the nation as a sophomore in 2013.

@Zareth Gray great to see you here!  

Talk is cheap - look at his credentials before investing in a mentor.Be smart about what you do and who you work with - you can look at listed real estate but your best deal is going to come from dealing directly with sellers.Also remember creative financing techniques - nothing down deals - Control and Roll System - Delayed Settlements - Hybrid offers - and don't forget owner assisted financing and make sure you always ask for a principal mortgage.Have fun - make full disclosures and make sure you understand the laws related to mortgage foreclosures - fail to do this and you may have a paid vacation to the Gray Bar Motel (a nice little room with one small window and the food is free, but the space is restricted).Remember your goal should be CASH FLOW or EQUITY - forget the emotional appeal - it is all about numbers - understand them and you'll do well in Charm City.Charles Parrish

@Jason Gray@Denzel Stovall

Hi TJ Gray .I'm currently looking to get into acquiring single family dwellings to hold as rental properties but plan to expand to flips in the future.

I understand that the more we clarify the mechanics in the beginning the less gray area we will face in the future.  

And the HOA lost; the purple swingset stays:http://www.foxnews.com/us/2015/08/31/judge-rules-m...I bet the uptight a-holes who rejected the family's offer to settle by painting the swingset gray are regretting it now.  

From your kind answers I see that the answer is rather gray because it depends on several factors.Thanks to all for sharing your invaluable experience.