Of course it is very important to do proper due diligence on the investment and the operator.As far as self-directed IRA there are number of companies offering such service, this topic has been discussed here on the forum many times so you should search using this keyword and learn from those discussions.

-Start at a title company- they will help you structure liens and deeds so that your interest is protected properly.

I actually have two south side chicago properties right in that pocket of Greater Grand Crossing.The key here, more than anywhere else, is proper tenant screening and property management. 

.🚨 Common issues I see:❌ Not properly tracking repairs vs. capital improvements❌ Missing out on cost segregation & depreciation write-offs❌ Scrambling at tax time instead of planning proactivelyI’d love to hear from the group—what’s been your biggest tax headache as an investor?

Take ownership of your mistake and learn to do the proper due diligence recommended above😊Please send us any feedback via email, as we do not use the DM feature here.

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

So, proper screening is EXTREMELY important!

@Ella Marie the Pro's are you can build long term wealth, the Cons are you can lose money if you cannot properly quantify risk.

Are they tracking your financials properly?

So, there must be a way to do this properly, as they must be doing it.