In each case a simple consistent policy helped mitigate or eliminate a legal proceeding.

This eliminates control of the deal to the "managers" in the JV because he who controls the funds controls the deal.Has anyone come up with a good way to make a JV work for something like this?

This would decrease debt service and that combined with fighting to get property taxes reduced would help your losses.As mentioned what course you take various on your net worth,income,other assets held in the same name or corp,if you are trying to preserve credit or do not care etc.More info on your individual situation would help.

In addition to the obvious contribution limitations, the dangers of self-dealing, and the liability risks noted above, a self-directed retirement plan also eliminates the ability to take advantage of significant real estate benefits as depreciation and many business deductions.

The properties were tenanted and mildly profitable (the owner had large loans and so the debt service wiped out most of the cash flow).

Also, it's a Fannie Mae property and there was mention of closing cost incentives.Had I known of the error I wouldn't have already hired out for the nominal things and saved my money for the things that I HAVE to hire out for.I'm the kind of guy that pays his debts, but the title company AND the realtor were hired by me to do a job because I'm too naive in those areas (the same reason anyone hires any professional).

They use every additional dollar they receive each month to reduce debt service.

. / $4,166.67Annual debt service “DS”Revenues:Monthly AnnuallyRental Income$935$11,220.00 (RI)Vacancy @ 8% ($74.80)($897.60)Net Rental Income $860.20$10,322.40 NRI)Operating Expenses:Property Tax- 1800 (this is being challenged currently, but no ruling at this time)Insurance- 1000 (estimate, I will get a quote on this for sure.)Maintenance- 1200 (Estimate)Utilities- 800 (Estimate)Advertising- 100 (Estimate)Total Operating Expenses (*Very Estimated*) = $4900 (TOE)Net Operating IncomeNRI-TOE= NOI$10,322.40-$4900= $5422.50 (NOI)Total Cash FlowNOI- DS= TCF$5.422.40-$4,166.67= $1,255.73Return on InvestmentTCF/ TCO= ROI$1,255.73/ $5,000= .2511 (25.11%)Cash on Cash (Considering- Down Payment, Upfront Repairs, Closing Costs)TCF/ TCO (W/repairs and closing costs)$1,255.73/ $6,500 ($5,000 DP + $0 Initial Repairs + $1,500 Closing Cost) = .1923 (19.23%)My thoughts regarding this deal: I think the asking price is a little high for the property considering it’s age, condition (off of visual inspection from the street level only), location, what limited comps I could find.

Both Roths and Traditional IRA will be subject to UBIT if either you do debt financing within your IRA (i.e. take out a non-recourse note to help fund a property in your IRA) or if you run a business in the IRA that would normally be subject to taxes outside the IRA.

The lender will be happy to make a loan and you can get paid.I have seen banks counter with a faster closing date, I have heard from REO agents that the bank wants to get deals closed by the end of the month to eliminate additional costs, etc.