There are 4 other key aspects to consider when analyzing deals and they are - tax savings, principal paydown/equity building, appreciation, and inflation hedging. 

When you find a buyer, we get our loan back plus our fee at closing.

In the event that Borrower is in default then the interest rate will increase to fifteen (15%) percent per annum from the date of the default to the date that the default is cured or the loan is paid off in full, and Borrower will be assessed an additional loan fee of 2% of the principal amount.

Quote from @Daniel Grimsley: Whether it is their last month, first month, or 33rd month, you should have a clear policy of when late fees are applied and when you start eviction.

Maybe some extra money owed on taxes?

That got me onto the tax lien / deed sales - which I then listed to 39 with Seth Williams.

I am considering two options for purchasing a A+++ SFR cash, Option 1 to place in a self directed IRA and let the IRA own the property and Option 2 is to buy in cash upfront and pay the taxes owed.I am 62 years old and have another five to seven years prior to retirement and so I am trying to set up my portfolio for income generation by that time.

Wall Street often doesn't highlight these options because they make money from the fees on traditional investments, but with a Self-Directed IRA or Self-Directed 401(k), people can take control of your retirement savings and invest directly into real assets if they wish.Here’s how it works:1.

This deal is based off a real tax deed auction property in FL:1912 Sq ft 3/2 SFH in Bay County- ARV: $415,101- Estimated Monthly Rent $2,984- based off 6 comps within a 1 Mi radius.- Adjusted Purchase Price/ Max Bid: $210,840.80- I start with the 1% rule (thus why I start the analysis by looking at rent) and then adjust the price based on the potential pay-out from a cash-out refi and equity position on the property- more on this in a second. - Potential Investor payout (15%): $242,466 - Rehab total: $76,480.00- I just used $40/ sqft for an estimate.

If your late fee is 5% you're earning a 60% or higher annualized rate of return on their late rent payment.