The thing I want you to understand is that $10M is not very much money as it relates to wealth, and specifically not if you project it forward and experience the impacts of inflation.

Think SALT Taxes and also the 199A Business Income deduction.Then changes to Tenant-Landlord laws.Then Economics of your locality and State, which is probably the one area that will really impact your profits.

This was a breakeven to a positive impact., C. 

I asked around and with the Covid-19 impact on supply chains and rising inflation, the cost estimated I’ve been getting are very high ($6.8k).There’s nothing wrong with the current setup but I think it’s a value add (yield $150/month rent increase) and less hassle for tenants.

Like if there was a woodshop next door that puts a lot of dust in the air, would that be detrimental to your operation? 

My first buyer's appraisal almost killed that plan and we considered making it a corporate rental which would yield $2500/month and have little impact of the updated asset

@Nate SanowI process forbearances everyday for COVID 19 impacted borrowers.

This tax would likely make a 12% IRR closer to an 11% IRR so it's about a 1-2% decrease in an IRR UBIT will impact most investments made through SDIRAs but this shouldn't deter people from using the SDIRA

Defaulting on the loan is a taxable event, and will be accompanied by a 10% penalty.If your other losses will offset that cost at the bottom line level of your tax return, then I suppose you could look at it that way.I would strongly consider the impact of forfeiting the tax-sheltered retirement savings, however. 

It is warmer tha tile, installs much faster and will not crack on impact (like from a dropped iron skillet).