If that were the case then nobody would use leverage.When an IRA engages in a debt-financed investment the portion of income that is derived from the borrowed funds is considered taxable - so 65% of gross rental income in my example.However, you have a $1,000 exemption off the top, and then get to apply the same ratio - in this case 65% - of all the normal deductions like interest on the note, depreciation, property taxes, etc. to reduce the amount of income that is taxable.The net taxable income will then generally be a pretty low number. 

@Amy Turnbull good idea to get feedback here, but this is something you should be engaging an accountant for.

Since this is my first post I wanted to keep it brief, but I am looking forward to joining the community and engaging with all of you!

If you’re unable to do it yourself engage a title company or real estate attorney.

he was exactly where I wanted to be. when he spoke I listened. anytime i could find an excuse to get out of my seat to engage with him and ask questions at work, I took it. 

Daughter just got her first job, and will likely live in Phoenix long term (she is engaged to a local).

Closing costs and realtor commissions are a part of the game. Real

I understand all the ways of buying RE and I'm excited to buy but I want to be more educated on good deals and just want to be a fly on the wall or engage in convos around WA.

If the activities rise to the level of a trade or business and you/the entity are/is a dealer with respect to the mentioned properties, the income would not be capital gains but instead ordinary trade or business income subject to SE taxes.I'd recommend you engage a professional to help make the decision (especially if you expect first year net to be $300k), as there are qualitative and quantitative factors that need to be considered. 

I appreciate all of your feedback and it is helping me and I will keep you engaged honestly