Cost Overruns: After the final payment, the contractor claimed there were additional costs of $60K.

Working with a CPA can help you navigate tax implications, and staying focused on long-term planning will set you up for success.

How could this impact tax matters for both companies and the Joint Venture as a whole?

@Jun Lee One pro that I can think of a solo 401K is there is no UBIT taxes when an asset u invested that had leverage sales.

The property will be sold upon completion.Rate:  12.05%Term:  13 months interest onlyARV:  $648,000Loan Amount:  $433,000Processing Fees:  $15,361.64 (3 pts plus processing fees)Escrow Charges:  $3,130.90Insurance/taxes:  $1,722.82Construction Holdback:  $498,361Cash to Close:  $84,762.36 In the OP, you said that the loan amount was $346k.

Quote from @Francisco Milan: Your tax bill ?

Closing costs, including recording fees, transfer taxes and HOA transfer fees, if any5. 

Include an exit strategy, tax planning, and insurance to protect both parties.

So we would buy the aceage and since the legal descriptions still called out lot and block we would just start to deed out the lots to get them on the tax rolls and the Assessor would change the maps. 

The state’s housing is also ranked as the fourth most affordable in the country.Alabama currently has the second-lowest average property tax rate in the country at 0.4%, which helps investors keep more of the money they earn.