The option gives you the right to buy.OTOH, most residential leases prohibit subleasing.  

., excluded.)Not understanding the definition of a prohibited transaction when lending through your retirement plan.Making the perfect loan to a perfect borrower on a historic home, without knowing that there are three historic committees that must all agree on the repairs but never meet at the same time.

You can't do this everywhere however, and should check the requirements in the state you want to make your loan.Alternately, you can do a security registration (i.e. a syndication), but these can be prohibitively expensive and there are also many restrictions on who can invest.

I moved my account to Equity Trust because I was very nervous about making a mis-step with a prohibited party or a disallowed transaction and Equity Trust reviews all of the paperwork for each investment to make sure that I am not about to make a big mistake. 

Some of the things that can give you issues getting coverage for these types of policies:- Knob & Tube or Aluminum wiring- Flat Roofs- Tentants with prohibited types of dogs - Pre 1980's homes that do not have a Lead Safe certificate- Underground Tanks (active or inactive)These are just some of the underwriting issue we see.  

Such conversion need not comply with the requirements of the following specific provisions of this chapter: (a) Section 13-196-660 (height limits); however, in frame buildings, four or more levels of living space shall be prohibited and in buildings of ordinary construction, with or without attic living space, five or more levels shall be prohibited; (b) Section 13-196-050; however, all dwelling units must comply with the exit provisions of Chapter 13-160 except basement dwelling units may have a second exit through a room containing a heating plant; (c) Section 13-196-670 (stairwell enclosures); (d) Section 13-196-680 (corridor enclosures); (e) Section 13-196-690 (dwelling separations); (f) Section 13-196-710 (basement ceiling construction); however, if the basement contains a dwelling unit the entire basement ceiling construction is to be wood lath and plaster of half hour construction; (h) Section 13-196-720 (heating plants); however, basement apartments are to be separated from heating plants with partitions of one hour construction.

If the note is on a residence you can't prohibit early payoff under the SAFE Act, I suggest you follow the Act with any new modification.

@Kevin Carraway, I would suggest looking into establishing a serial LLC as the cost to set up and maintain multiple LLC's can become prohibitively expensive.

I'm finding loan and holding costs can be prohibitive to do flips for properties to be owner occupied in those areas even though the majority of homes on the street are already owner occupied.

@Seth Williams For water, you need to have everything submetered in order to charge but as far as I can tell from my own research utility billing for gas is prohibited.