One accountant said it’s not subject to self employment tax since it’s considered passive (but origination fees and other loan income fees are subject to it.

Does anyone have any experience buying subject to in Oklahoma?

The borrower purchased the subject property at a VERY HIGH PRICE.

., materials, labor, holding costs), and the net profit will be subject to both income tax and potentially self-employment tax.If you run lending as a business, then interest income changes to ordinary income.

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

Thank you for your thoughts on the subject.

Im really just looking for information of what i should be foucusing on right now and what subjects to be researching in what order.

Additionally, there is usually a document in the loan doc set that has you certifying that no family members would be occupying the subject property. 

This is a silly question, but if I go in, asking for information like this, how would I even approach the subject?

Quote from @Devin James: @Jon K.The average return is not the same as an annualized return, as it ignores compounding.Your calculation takes compounding into account.https://www.investopedia.com/terms/a/averagereturn.asp#:~:text=Key%20Takeaways-,The%20average%20return%20is%20the%20simple%20mathematical%20average%20of%20a,return%2C%20as%20it%20ignores%20compounding.Links to the formula for ARR, which was the subject of your original post unless I misunderstood you.https://www.investopedia.com/terms/a/arr.asphttps://www.adventuresincre.com/glossary/average-rate-returnhttps://www.highradius.com/resources/Blog/accounting-rate-of...