Also, this is going to sound rather controversial but I've been formulating this theory for a while but I don't think that the 1% rule applies to the Boston area and here is why:That is a rule of thumb to use in a cash flow environment.

@Benedict ReyesYou will need to check with your plan administrator as the following 401k participant loan rule will need to be considered. https://www.irs.gov/retirement-plans/retirement-pl...https://www.irs.gov/retirement-plans/retirement-pl...

You and this tenant have definitely started off wrong and functioned poorly for 3 years.Get your own tenant and reclaim your profits.Then see if there is a Landlord Association in your area that you can join and start attending local meetings to get local support and information.We want to see you successful!

I appreciate your expert input.Do these rules apply to NJ as well??

You certainly have to understand the rules of an SDIRA and then play by them.

How do you calculate the 1% in the One-Percent Rule?

I do hope to build very strong relationships to support my fix & flip business, so thank you so much for that feedback that it's the right thing to do!

@Reid ShafenbergTo learn about the IRA distribution rules, see the following. https://www.irs.gov/retirement-plans/retirement-pl...

Then sit with him at his kitchen table and draft your agreement.That's assuming that you're willing to do this without legal support or oversight. 

I agree with most of what I've read here, but the bottom line is that you can set rules in place, but you cannot stop smokers from finding their way into your property.