Hi All, I purchased a 5 unit property in SW Michigan about a year ago. I bought the property from the bank for very cheap, but now that I've done renovations, raised rents, billed back utilities, and have the property...

My assumption was that you have decent equity; enough to consider capital gains will be an issue.

I am going from an assumption that you would use hard money to fund the whole project, not just a portion.

I made some assumptions on G&A Expenses, property maintenance (different than trailer maintenance), garbage fees, tree maintenance, fence maintenance, road maintenance, licensing, septic tank pumping, etc.I'm no expert; just my thoughts.

@Eddie Cottingham So I have the property’s ARV is lowballed at 315,000 I have it under contract as a mortgage assumption, owner currently owes about 210,000 with a 3.5% interest rate. the property needs minor repairs ( kitchen & siding ) it’s a SFH 4 Beds 2.5 baths 1900sqft .

If you do FHA 3.5% down, the mortgage insurance will be 0.85% per year for 95% of scenarios (less if you have good credit/DTI and go fannie/freddie, but we'll work with 0.85%).So you're losing 0.85% of the loan amount worth of wealth during that two years you would otherwise be saving up.Assuming you are buying in a market where real estate values are trending upwards, a very modest appreciation assumption will let you know how much you are gaining. 

When the cost per sq foot is 25%+ higher than condos or SFR you really have to pause in your assumptions that just because its a 4 unit its a good deal.

@Angel DrossI’m going to make an assumption here, an employer is not going to allow you to transfer/rollover to another custodian that allows Self Directed IRA investing while you’re still employed there. 

I am shooting from the hip here, making a few assumptions. 

Their assumption is that if the excess available cash from the tax-deferred side exceeds your contribution limits, that you would separately invest that in an after-tax account.