Yes, and I double checked with Satchie Carvounis (SDIRA consultant at Security Trust) that is correct as soon as the property has been 100% distributed to the IRA owner they can treat it as their own and don't have to worry about IRS guidelines.

Should I be treating this more like a rehab (Purchase Price = Resale Price - Rehab/Demo Costs - Fixed Costs) and assume that there is no subdivision possibility?

George,I totally agree with you that tenants should be treated well.

Remember as an investor it is not the VOLUME and size of the deals you put together because many can be crap it is the QUALITY of the deals you do.I would rather spend a few months doing an awesome acquisition than buying up marginal to okay deals left and right.I have seen this happen on flips and long term holds.In both cases the investor did real well on one property and then started getting carried away.Pretty soon a couple of marginal deals starting to tank their long term portfolio into a neutral or negative position.Even on flips they made good on a few and then the next few went real bad and they were almost at square one again.You have to treat this business like a pawn shop.You will come across many sellers but few will accept your price and terms.So you have to keep going or come back to the seller until they get desperate enough to meet your terms.A classic tactic with a seller is when they will not accept your price and terms.Then a few months pass and they come back to you.Then if you have a couple deals on your plate you come from a position of power.You let them know you are involved with other projects now and to take this property on now you couldn't pay what you offered before and can now only do XX.There will always be another quality deal to be had but millions of marginal to okay deals to get stuck in for years and paralyze the growth and success of your real estate investment portfolio.

I'm increasing the real estate as much as possible since I know it and love it, and because the returns have treated me well.

Better to hold rental property in an LLC treated as a partnership, if you feel the need to form an LLC.If this is your first rental property, then you should determine what you are really protecting with a business entity.

Chelsey, found the sound of it (correct me if I am wrong) you have encountered subterranean termites and the wood underneath must have been touching soil at some point for these termites to infest the wood.Sounds like this can in fact be treated and resolved underneath without doing any work in the interior.

I think if you treat them with respect they will direct their anger at their deadbeat room mate and not be trashing your place.

From what I can tell, both are treated exactly the same for tax purposes (S Corp) but there are a few minor differences on the legal side. 1.

The areas I am buying are filled with hardworking blue collar workers who are tired of living in places where property managers treat them like crap and don't fix issues.