Purchase price: $8,000 Cash invested: $2,000 I purchased 2.5 acres of Raw Land in Joshua Tree, less than ten minute drive from the park and downtown area in 2018.Purchased via seller financing.2k down with monthly installments to pay out rest.Current similar lots are selling for around $65kI plan to hold long term Would eventually love to develop something on the land-either an art park or residence.

Eventually called up my bank to stop this fraudster named Kai and ask for refund, but the bank can only credit the most recent charge per their policy.

Eventually I obtained insurance on all the aplliances in case a repair is needed.

So it should still be reported on your tax return, but limited by the passive activity loss limitations referred to above.Any rental property expenses and depreciation might not be deductible in the first year, but they carry forward to future years to offset future passive income (including the eventual sale/gain of that property).

If I had held I would have eventually made around a quarter million instead of losing 100k+.

Thanks in advance ;)  pay the tax. eventually will have to pay it anyways - rather pay tax now vs. buying a bad deal

If the landlord was aware of his past, yet rented to him anyway - any lawyer worth their salt would make a nexus between those two pieces of information and create a liability claim.In addition to the extreme negative press you would get, it also takes time, money and energy to defend a lawsuit you will eventually win.

Try to track days on market and price trends to see how well an area is selling.There is a housing shortage in general, so every house will eventually be a home.

There can be more compliance work and potentially higher costs compared to just a Self-Directed IRA. 6) If you decide to rollover to a Self-Directed IRA first (your pre-tax money) you can always rollover that money into a Solo 401k when you eventually qualify.

I’m sure that will eventually catch up to me and I’ll have some problems but I feel the increased tenant pool outweighs any negative.