Trade or Business: In defining “unrelated trade or business,” the regulations start with the concept of “trade or business” as used by Internal Revenue Code Section 162, which allows deductions for expenses paid or incurred “in carrying on any trade or business.”Regularly Carried On: The UBIT rules generally only applies to income of an unrelated trade or business that is “regularly carried on” by an organization.

You'll be able to recognize concepts that others have applied.

I would love to get the experience of using a hard money lender under our belt, but this seems the better, less costly route for now until we prove the concept, experience a larger scale renovation first, and then jump in with hard money when we hit our stride and need it to keep growing.

@Doug Dattawalker1031 is a federal concept and you could work with one who services clients nationwide.

So that would make it simpler.2.

In truth, I've seen conventional appraisals require fixes as well, but again ... if you're explaining a new concept to a seller, then you're already losing.If you really want to use the VA loan, I'd try to find an off-market deal or otherwise find something where you're not in a competitive bidding situation (homes that have been on market for weeks or months, for instance).

@Garrett GahnWell, you've got something that a lot of people starting in this business don't have: the honesty to admit that getting to a realistic ARV is not easy.There is very much a giant pool of thick swirling BS around the concept of ARV in real estate investing.

This would be simpler and more convenient (it does not make sense to have Traditional self-directed IRA, contribute there only to convert to Roth, there are fees while you can have your Fidelity Traditional IRA at no cost).2.

VA loan & clergy housing tax benefits let me cut costs even more - thinking about the BP "unfair advantage" concept.

@Michael Mullins @Stephen James It's simple really, supply and demand.