During this time you are not generating any return from the money invested in the ADU.

Here is some clarification:When property inside of an IRA is financed, it generates UDFI (Unrelated Debt-Financed Income), the income derived from the leveraged portion of the property. 

During this time you are not generating any return from the money invested in the ADU.

My stock portfolio has compounded by 45% annually over the past several years and I routinely take profits and derisk, go into cash and then back if I find deals.

But you are required to file a Schedule E in the US every year showing the total rents you received, the expenses you had against those  rents and your subsequent profit or loss. 

Our recent fund was a preferred return plus a split on profit after expenses.

this is a direct relation to lack of inventory.. new construction on many markets is as robust as its ever been.. we have had spectacular years the last 3 years of course during covid was tough with supply chains but my 500k house I am now selling for 700k and my build cost have gone up by maybe 100k.. so record profits for us.. 

UBIT is generated two ways.

In the unlikely event that you are the exception that proves the rule, the rare 18 year old who can actually generate a serious income by wholesaling real estate, your day to day will look like the following: - You will door knock, cold call, send mailers, and otherwise create lists of people who are in the most desperate moments of their lives. 

(I am looking for private lenders who don't charge interest but rather take a portion of the profit.)I emailed the support desk for a refund.