Direct vs indirect ownership

Quest would document the IRA's ownership of the trust and would only be involved if the IRA itself were adding or removing capital from the trust.

Most loan docs do contain a "due on sale" clause which basically says if the property ownership changes the bank reserves the right to call the whole note within a specified period of time.

Also, you may be interested to know that if your CPA/tax professional "groups" your business with the property in the first year of ownership, the building becomes active and the excess paper losses you can generate with cost segregation can be taken against the rental income and your business income.

@Dave DeMarinis :  The 12 plex is in Harvest and is doing well, we achieved our EOY2 average target rent in month 6 and are getting EOY3 target rents in current rollovers (currently month 7 of ownership). 

I am confident that this year, this question notwithstanding, I got it right.However; last year, with only two months of ownership, box 3 had $100 dollars in it. 

As residential lending standards tighten (higher down-payments, higher credit score requirements) I believe we'll see an increase in renters and decrease in home ownership. 

I purchased all my MF's from retiring sellers, ages 75-85, with ownership of the buildings from 20 years all the way to over 60 years.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Great local ownership  who’s always accessible and has helped me early on.