Ah the joys of working on sinks.

There are two areas of expenses, those that must be done and those that are purely astatic.

I’ve always found joy in seeing people smile when they eat the food that I cook. 

As noted it’s a pass through entity, meaning it gets rolled up onto your taxesIf you have two people on the LLc then you get the joy of paying to have K-1’s completed.

And some of the statements above indicted people still think that way....yeah if I'm only making $2400/year and something goes wrong, I'm screwed..... my "cash flow" just disappeared for a couple of years..But not if that $2400/year is really pure profit even after I have already budgeted and accounted for putting a new HVAC or roof or whatever into the unit.

While you can have your retirement plan become a shareholder of your business, the business itself operates in the taxable realm.A self-directed IRA is a purely passive means of deploying tax-sheltered retirement savings more broadly than just common financial products, but is still very much an IRA, with very hands-off approaches required. 

Does not sound like a pure lender.. sounds like an investment firm.

It's just one of the many joys of real estate investing...

This post is probably much different than most on this site, as it's definitely emotionally -driven, not a pure investment decision.

That is 35 months of pure profit you would give to Uncle Sam to keep it past your grace period for living in the house.