As explained above, income from the financed portion of the property in an IRA would be taxed as well, but you can deduct related expenses, including depreciation, to minimize this tax liability; that is why I recommend a discussion with a tax expert to understand what your numbers would look like.Hope this helps!  

Also know that building a home seldom goes as expected - I have relatives that just built a nicer house… they thought it would take 9 months… it literally took 18-24 months between delays in permitting and the builder just not being able to get it done in a timely manner - often due to sub-contractor issues.  

Unlike some of our other tax-related debates, this one is actually important to a lot of people. 

Quote from @Theodore Sutton: Check out the site meetup.com and also the events page on BP for meetings up in your area to meet people like this and build relationships.

Worst case, you just cover it yourself and keep good neighbor relations.

This amounts to lost opportunity because if you had purchased RE, at the closing it can start producing return. 5) ADUs detract from the existing structure whether this is privacy, a garage, or just yard space. 6) this is related to number 1, but there are many more buyers looking to purchase homes for their family than there are RE investors looking to purchase small unit count properties.

A link to FilePlace is at the bottom of every page, making it easy to find.If you have technical issues, email [email protected], and someone will help you.

While that may be good for the 10% pref investors, you may have been better off holding another year and getting another 7%.Related to this, I generally don't like preferred returns as a passive investor. 

Sure, but success is relative.

Seems to be we are on the same page, the unit is 1395sqft and the gas furnace quote was about 10k for us as well.