What are your monthly costs on your Texas property minus the large expenses that are outside of the ordinary?

One last thing, don’t forget the ordinary income taxes you would have to pay on that 11% loan you would be funding.

Your IRA will be taxed as ordinary income. 4) investing in a self directed IRA or 401k adds complexity and red tape.

Ordinary and necessary is the requirement.

You’ll pay short-term capital gains tax based on your ordinary income.

Hi Brit,Thanks for the input.

Bad idea, but just a couple of observations.If you "buy it now" you won't inherit it, you already own it.Your parents will pay tax on a minimum "imputed" interest.If you don't pay the full mtg. when you sell it, presumably after your parents' death, the "forgiven" amount of the loan will be ordinary income.Dream up something else.

People put their rentals in LLC's because the tax on rental income is different and lower than ordinary income.  

Hello all!My name is Harry, this is my first post on BiggerPockets and I’m very glad to have been introduced to this site by Sam/Chris Miles @ IronOak FL.What a great site!!! Josh and Brandon – I love the podcast, it ...

Tax court is littered with the corpses of developers who tried to 1031 their development project and got stung with ordinary tax as inventory.