As mentioned the main downside to using a SDIRA to purchase properties is you get no tax benefit upside (depreciation) and have to pay taxes on UDFI.

The ideal home price for you will depend on: 1) downpayment size 2) risk appetite, 3) preference for more cash flow or appreciation.Given our price points, our investors need to have 35-45K to start, on average.The typical cash-on-cash return on our properties net of loan payments, insurance, taxes, and property management fees is 6-8%.Ultimately, you can obtain financing from any lender, although we have partner lenders that can provide very competitive rates.

Active = Income earned from Material Participation.Whether that's SMB, W-2, contract income, or prof real estate.This is income where ordinary tax is paid and losses offset other income.

You will also have a credit on statement for pro-rated taxes due to buyer.  

Generally, the properties that benefit the most from a cost segregation study are properties that are remodeled, expanded, purchased or constructed after 1987, the year in which the Investment Tax Credit was enacted.

@Wiey Underwood Prior to pulling the trigger on a Cost Seg study, you should evaluate 2 things:1 - How much net additional deprecation tax deductions a Cost Seg study would provide: Best way to get this is by requesting a free feasibility analysis from a Cost Seg provider.

And you still get the same benefits in terms of tax benefits (depreciation is a beautiful thing), rental profits, principal paydown and appreciation. 

The city may boost my business since I pay a lot of taxes.....

The $450K will be returned to me as payback of my loan to the intermediary, without trigger any capital gain taxes, right?

If you want predictability, value hard assets, and like the tax advantages, then investing in a real estate syndication may be a good fit.