He didn't say it the best way, but he meant that the income is not subject to self-employment tax.

I didn't realize you meant you owned the property management company.

Keep in mind this is meant to be conversational."

Generally, you probably will still qualify for some tax breaks against the rental income itself, but perhaps he/she meant that you may not be able to use any real estate losses to offset your ordinary wages, interest, dividends, etc? 

What I meant was if you're focusing on that area you might as well look for a home that's not in a flood zone to save on that expense.

- Just meant the fees the custodian takesQ:  What about funding the property itself, I recently heard that SDIRA's are hard to get loans on, I was just thinking of using my 401k for a down payment on an investment property (20-25% down)

.- Running properties as the businesses they are meant to be.

I meant if one started comparing to property price in Texas or Florida then you would see the opposite picture. 

It’s worse than someone telling you check your car’s blinker fluid. 

In that case, you will need the lawyer to draw up the note and associated paperwork.I'm not exactly sure what is meant by subject to financing, but that sounds a lot like a finance contingency, where in the buyer is allowed to bail out of the contract if they can't get a loan.