You could offer to do month by month to see how it goes for a set period of time (eg 3 months) and then if it goes well and she's comfortable with her expenses, to do a lease at that point.

There are no economies of scale to build one property on one lot either so it ends up being more expensive for the builder which means they have to sell at a higher price in order to make their desired profit and if your market doesnt support this, then builder loses money.

The reason you have to obtain this special type of financing is because the tax code provisions (IRC 4975) do not allow you to personally guarantee debt that your IRA or Solo 401k takes on. 2) It was referenced above UBIT, which is a special tax on the portion of the after expenses and depreciation, that is attributed to the debt financed percentage of the property.

Lakewood is a nicer area with a lot of multi-family rentals, but they're more on the expensive side. 

Hi Maggie,  there are great ways to make money in expensive ca markets.  

Upfront expenses and monthly payments must be considered when calculating the return on your investment.EXAMPLEYou cash out $100,000 of your equity and use this as a down payment on a $400,000 investment property.

Can provide more info as needed.You may be able to expense if out if you qualify for Safe Harbour.

Regions with lower living costs, like Ohio or Alabama, often offer strong cash flow and better ROI than expensive coastal markets.3.

Most PM software won't be worth the cost at this point depending on your budget.At this stage, a good ole Excel/Google Sheet will do for keeping up with your income/expenses.

The key is to allocate expenses proportionally between your primary residence and the rental units.