What made this opportunity particularly enticing was my prior experience managing this exact duplex for the same investor over a span of three years.The property itself is a 1950s duplex that underwent significant renovations in 2017.

Again, I wish the numbers you are posting were correct, our income would go up by 100s of thousands,,,,,,,,, All the best THIS is my corrected post, maybe you were responding PRIOR to me correcting it 

We used 1031 exchange to roll over all the profits and postpone taxes.

What are the tax consequences?

With an SDIRA, you're free to venture into the exciting world of private equity, tax liens, and even the digital gold rush of cryptocurrencies.The Self-Directed Roth IRA EdgeThink of a Self-Directed Roth IRA as the cool cousin who's got it all figured out.

Owner shall pay, except as provided elsewhere in thisAgreement, all expenses incurred by the Agent, including, but not limited to, reasonable attorney’s fees and Agent’s costs andtime in connection with any claim, proceeding, or suit involving an alleged violation by the Agent or Owner, or both, of any lawpertaining to fair employment, fair credit reporting, environmental protection, rent control, taxes, or fair housing, including, butnot limited to, any law prohibiting, or making illegal, discrimination on the basis of race, sex, creed, color, religion, national origin,age, marital status, or mental or physical handicap, provided, however, that the Owner shall not be responsible to the Agent forany expenses in the event that Agent is finally adjudicated to have personally, and not in a representative capacity, violated anysuch law, unless such acts and or omissions are outside the course and scope of Agent’s duties hereunder.

Appreciation can be fantastic, but purchasing an under performing asset with hopes of high appreciation isn’t ideal unless you have plenty of cash or need tax incentives. 

Other fee's look padded and transfer taxes can sometimes be split or paid by seller.

Plus, taxes are high.

Now I'm studying CRE finance, investment, and tax strategies aside from my full-time job to better equip myself with the essential financial literacy.