Even if they are all good, they will find someone to blame, and you are an easy target since you did that work without permits.Then, as @Bruce Woodruff stated, are you going to be aware if your contractor doesn't do everything to code (# and type of outlets, smoke/co det., proper egress, etc).

However, if it is a self-directed 401k plan, then you have more control over the investments, and there are no limitations except for a few types of prohibited transactions.

What made you interested in investing in this type of deal?

She is not the type to pay rent and has always paid late and late fees.

Make sure you have someone you trust running the numbers with you, and if that someone is a mentor or person that is very busy offer to bring them deals, pay them for their time, or bring some type of value to them (work for free on other things they are not good at and you are). 

Those types of properties are usually pure cash flow options.

Essentially, I’m buying out my partners and transferring the lots to my own LLC.1.Do I need a purchase and sale agreement for this type of transaction? 

The people I’ve encountered in my 40 + years as a real estate investor and private lender who are successful have the following in commonThey are educated as to principles of real estate; real estate law; and real estate financeThey LEARN something new about real estate investing almost every day, and are open to realigning their strategy, tactics, and portfolio to encompass new information and knowledgeThey SPECIALIZE either in a strategy, property type or geographical area, and become EXPERT in that areaThey have survived real estate “depressions” where property prices have dropped 20% - 50%They understand the difference between real estate investing, operating a real estate BUSINESS, and having a real estate job.They network, for knowledge, capital and most importantly DEAL FLOWThe key thing to consider when you watch a YouTube video, take an “introductory” seminar, or read a guru’s website, is what is the subject persons BIAS?  

I gain occupancy at the end of the month, and looking to begin on some of these projects then.I am a newborn when it comes to the real estate world, but I am trying to retain all the knowledge possible to become successful in this space - building a team, what type of real estate to enter, loan buying options and experience, location location location, you name it.

Purchase price: $1,360,000 Cash invested: $500,000 1BR 1BA with outdoor patio and water views in Manhattan's beloved West Village What made you interested in investing in this type of deal?