Can someone help me understand this using some arbitrary numbers for illustration purposes?

Joe Bertolino Wow, you did a great job of illustrating that a little landlord leadership can focus attention and solve a neighborhood problem.

She illustrates the importance not just of self-directed IRAs but of LLCs, C-Corps, S-Corps and Trusts.

Any accounting system should first be appropriate for the accuracy of illustrating the activity required in the easiest method that can provide the necessary information in accordance with good practices.Accounting under generally accepted accounting principles is not a requirement for any small company or individual, but doing so is usually the most appropriate, it will save you from converting or modifying categories for taxes and save your accountant many hours.Any program will follow GAAP I'm sure.

If you don't know i can make some guesses just for illustration purposes. 

The tax code/regulations do not define or illustrate when one activity is insubstantial in relation to another.

Illustration.

Going to have to fine tune that with my CPA ...To give credit where credit is due, here is an article that gave me some good ideas and illustrates how this may work:http://www.gocurrycracker.com/the-go-curry-cracker...

The financing used for the illustration is non-recourse at 60% LTV at 4.75%.Cash Purchase:Total Cash Invested:$124,800Total Property Price:$124,800Yearly Cash Flow: $7,437Annual Cash on Cash Return:6%Financed Purchase:Total Cash Invested:$52,980Total Property Price:$124,800Yearly Cash Flow: $7,437Annual Cash on Cash Return:14%These numbers are net and include taxes, HOA fees, insurance etc.

I was trying to illustrate that while you might be able to build a credit rating as far as having loans were concerned you somewhat offset that by increasing your debt to income which lowers your credit score.I have found that in most cases if you make a large enough down payment you will find someone that will make the loan you want.