They know the difference between a landlord who pays attention to detail and takes care of business, and one who doesnt.

They clearly state in this article, “ROBS plans, while not considered an abusive tax avoidance transaction, are questionable because they may solely benefit one individual – the individual who rolls over his or her existing retirement funds to the ROBS plan in a tax-free transaction.”Another option to gain personal access, as Lisa Liberski noted, would be a $50k maximum loan from your 401K.

You're money did a bit of the work, but most of the profit was probably through not charging for your labor.Year 2, you gained more knowledge in the industry and got a raise on your time and earned a good ROI.At the end of year 3, the amount you can earn on your labor stops growing so quickly, so it is very hard to double 500k.

Thanks for the heads up Steven, if I understand your point it is that if I take the cash and do not repair the property within a specified time I could have a tax on any gain.

I am not sure what you mean by "sad part they have a website and every thing (sic)"...most frauds make a website because it is a very cheap way to try and gain credibility.

There is alot to cover and I'm sure it will end up in a mess for both of you as it's clear you have not been doing this long enough to gain the skills and knowledge to pull it off.....so my suggestion is to pull that option and get things set up first.

"Disclosed Operating expenses:"RUN your own numbers.400 rent X 4 = 1,600 monthly X 12 = 19,20019,200 gross income divided by half.10% vacancy30% operating and expense10% managementYou have then 9,600 a year.At a 10 CAP you have 96,000 purchase price.1 beds have a lot more turnover than 2 beds do.The people get a boyfriend or girlfriend,get pregnant,family member or mom moves in and they now need a 2 bed.Pay attention to if 400 is at market or below market rent.If it's below market you can keep tenants staying for a long time.If it's high for the area or at market people will move as soon as their income starts falling to a cheaper alternative which creates more turnover.For each turnover you will have lost rent and re-condition costs.The 96,000 purchase price does not include immediate fixes.Example the roof needs redone,mechanicals only have 1 or 2 years left before having to replace etc.

I would guess getting 20% appreciation in the next 6-8 years would be the top end of possible expectations, unless there's something you know that's going to happen in your area to drive that level of gains.

There is an old saying about not paying for something you can do yourself making you wealthier, like hard work pays, but not if you are really making more money or a more economic benefit is gained by having someone else do something.

When you learn to apply the tax benefits for example to a large family farm for development, the gain for the seller can be a killer (I did one that the family had from the 1870s).