This only applies to 3-4 unit properties.I think you are on the right track, as this is an equity play.

Keep in mind that strict rules apply, such as avoiding self-dealing, prohibited transactions, and personally benefiting from the property.If you’re not looking to involve your IRA directly in the property purchase, you could explore other creative financing strategies outside of your retirement account.

Quote from @Michael Smythe: @Zachary YoungRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If the property requires rehab, the Realtor and/ or Mortgage Broker will suggest applying, for a FHA 203k Loan.

Applying that to RE investing, most would agree your first FHA loan should be a multi-unit house hack.

This allows you to report rental income and expenses directly on Schedule E of your joint tax return, avoiding the need for Form 1065 and K-1s.When you applied for an EIN, the IRS automatically classified your LLC as a partnership, which is why it instructed you to file Form 1065.

Until the conditional use permit is applied for, an operator of a short-term rental is required to apply for a short-term rental permit.

The same skillsets apply to your question.

If you gift a house, the fair market value (FMV) at the time of the gift applies to the lifetime gift limit—not the amount you purchased it for.

The only flaw I had was I purchased the property out right, where I should of applied for a mortage.