Yes - I agree with Jason Scott-- wait and see -depends on how good the price is -Also get your own attorney to do title check-for $100 or so -- May be if he was a wealthy man --may have divorce or loss in some business deal and may have this townhome as lien along with other properties or business --so complicated title --but can be Resolved through your own attorney talking to lender --Also do not get too attached with any one property --if you are going to live in --have your own Mortgage approved ==Pre Qualified and buy a smaller house--live there two years --do some improvements and convert to rental and buy next REO --good luck

This is great info...I didn't realize that this is a NEW change...nice that the government/IRS is actually doing something to make things simpler for some people, not more complicated (for a change)...

I would assume it would be easier to get financing in the state in which I will be investing, and if I am incorporated in my home state what complications might this cause?

The client had an approval dated prior to that without the clause, and then some complications required them to re-submit the deal and the new approval letter came after August 1.There is an "Affidavit of Arms Length Transaction" that must be signed by the Seller(s), Buyer(s), and their respective Agent(s) as well as the Escrow Agent.

Judicial foreclosure only.

Its all very complicated so I may have to read it front to back a few times.My question is how many of you actually do this?

In my opinion, IRA's are better served making loans on RE rather than owning teh RE due to several negatives, of which include, but not limited to, no depreciation deductions inside an IRA, all the handcufss from the IRS restrictions, the managerial aspects (hands on it takes) for the IRA which can get complicated, and the lack of ability to use leverage.If you do self direct, you will want to use an LLC for checkbook control and not a C corp.

Since you don't reside in AZ you are required to report only the income earned in AZ.It gets a little complicated though based on the type of income and how each state defines income.

I am sure there is a logical explanation for this and it may be complicated, but a simplified example may serve to illustrate the point for the OP.

It is comical, but that is how complicated the whole thing really is!