You Save the relationship with the seller and you boost your reputation as an investor.

Be sure to drive this neighborhood thoroughly before pulling the trigger.Another area to consider is the Del Paso Heights / Old North Sacramento area, basically all of the 95815 Zip code.They are also trying to gentrify that area as well, but it's second in line to Oak Park, so you won't get as much help with the boost in property values down the road but you'll also face less competition from other investors and rehabbers.Once again, it's a street by street basis in this area...

Moral is, if your referred contractor is within your price range, why would it bother you how much he is making or who shares his income?

Don't be afraid of a SE tax if w-2 employed- be thankful you made that much and boosted your yearly social security earnings- but it will likely not bite you to the tune of $15k in extra tax on a $100k profit.  

In addition, most of our acquisitions include large parking lots that are not needed for self-storage, so we have the ability to sell off outpads (sections of parking lot) to developers resulting in a boost to our IRR.Self-storage is quick, low cost and easy to manage.

It could be a nice boost in returns if you end up doing a live in flip or something like that!

See this blog post for more details: https://www.biggerpockets.com/blogs/2810/51528-how-to-boost-your-real-estate-returns-with-a-self-directed-ira

If i boost that up to 16% i get these numbersPurchase Price 216,000 Down Payment $ 43,200 Vacancy %8%Repair/Maint %16%Management %10%Taxes & Ins %15%And for the profit sectionLoan Amount 172,800 Monthly Payment 1,136 Cost Per Unit 36,000 Projected Cash FlowGross Rents 40,200 Vacancy (3,216)Net Rents 36,984 Taxes & Ins (6,030)Repairs/Maint (6,432)Management (4,020)NOI 20,502 Debt Service 13,628 Excess(Defict) 6,874 DSCR1.50ROI16%

If that ever happens, it will be a potential boost to home prices in the area when it becomes that much more accessible from the base. 

Since NJ has highest property tax,  MCC would be great help on this purchase and boost some cash flow.