I am considering two options for purchasing a A+++ SFR cash, Option 1 to place in a self directed IRA and let the IRA own the property and Option 2 is to buy in cash upfront and pay the taxes owed.I am 62 years old and have another five to seven years prior to retirement and so I am trying to set up my portfolio for income generation by that time.

Both the new and old accountant send monthly statements, but the old accountant also used to automatically send me an annual statement at the end of the year for my taxes which is really helpful. 

This deal is based off a real tax deed auction property in FL:1912 Sq ft 3/2 SFH in Bay County- ARV: $415,101- Estimated Monthly Rent $2,984- based off 6 comps within a 1 Mi radius.- Adjusted Purchase Price/ Max Bid: $210,840.80- I start with the 1% rule (thus why I start the analysis by looking at rent) and then adjust the price based on the potential pay-out from a cash-out refi and equity position on the property- more on this in a second. - Potential Investor payout (15%): $242,466 - Rehab total: $76,480.00- I just used $40/ sqft for an estimate.

@Tony HerlambangI recommend people talk with a lawyer to setup and LLC because it deals with liability rather than taxes. 

Property taxes are low in TN which makes it an appealing place to invest.

Excel tells me how much all of the regular things are (mortgage, insurance, etc), but the notebook is where I track everything for taxes and what I grab when I do my taxes (along with a file with all the receipts and copies of bills). 

In 3-4 years, you will not have a lot of equity in the home, so I'm not sure you'd want to refinance (if you plan on trying that, talk the bank because ending your mortgage before the term is up (ie 1 yr, 2 yr) comes with a heavy interest penalty (basically you have to pay out all of the interest remaining for the rest of that term).As for renting vs investing elsewhere-run the numbers as to what your payments would be if you bought a house including insurance and property taxes and repairs vs renting. 

You're investing there, paying taxes, making friends, bringing your friends and hoping to create a safe space for others to visit where the people on the other end of the line live full time. 

First, understand the local real estate market, including housing prices, rental yields, property taxes, etc.

I currently have 4 SFH rentals in the southeast, 3 of which are owned free-and-clear save for property taxes and insurance.