You can weather the storm, so to speak, by taking advantage of any deals that arise as a result of government policies or other economic woes.

Within the real-estate investing arena, such issues commonly arise when the retirement account engages in RE flipping.In general, when a 401k invests in an entity that is an operating business and is not a C-corp, the income received will be taxable to the 401k as Unrelated Business Taxable Income.

David, good comments and you are certainly on target, it's not really about pulling 10% of rents but the opportunities that arise from the position.Chris, over time it can be profitable, it's building the business that is tough.

But, reviewing all the new listings on a regular basis helps me build up my knowledge of the market I'm in so I can spot a deal quicker and easier when they arise.

Obviously a concern that arises with a partner is not following through with their commitments.

I just started and although I do not have the extra money throw away on a warranty that I may not even need I REALLY do not have the money to spend on an occurance if one should arise and I'm not covered. as soon as I build a nice cusion of my own I think I will discontinue the warranty as per your suggestion.

The problem arises when it comes to creating a paper trail for my LLC for the money that was loaned and how to create the contract.

I am assuming they find a tenant and address issues as they arise?

Have a diverse community that you are investing in and have a rising population.  

By doing this, you are covering yourself when a major expense arises such as Roof Replacement/ Major Roof Repair, a major repair or replacement to the plumbing or electrical system(s).