@Brad Kanouse,If you take a distribution from an IRA - it will be subject to taxes and penalties.You can convert your IRA into a "Self-directed IRA" and have the IRA buy the property, in this case you are not the owner, the IRA is.

Some local jurisdictions have harsher rent control and it can cost more in those jurisdictions.good luck  If it is in the city of Los Angeles, most MFU are subject to rent control.

“Overpriced to begin with” is subjective, and before the phenomenon I’m describing it was all up, up, up.

Other cases- hazard insurance was not renewing or placing high subject to repairs/improvements to maintain or the market cap of my commercial apts was rising as fast as interest rates like in '22. 

Does the common equity know about this capital (if not, do you want to invest and then have the sponsor subject to investor lawsuits because it wasn't disclosed)?

For you, it will likely be business income / ordinary income(non portfolio) where it will be deemed active / passive depending on your level of participation.There are some court cases out there where people who originate 4 or more loans in a year are moreso deemed in the trade or business of lending money.It will depend on the original poster's taxaccountant to determine how he/she will treat the income.The one con of it being business income is that it may be subject to self-employment taxes.

Yeah, I suppose it could be subject to debate.

You will subject to the lending market at the time near to the balloon expiration.I would negotiate for the recurring option to extend the loan an additional year at the cost of a 0.75% rate increase.

For every 100 deals they send, 1 might be an actual deal.To answer the question in your subject line - I flip between 1-3 properties at a time.

The other aspect is identifying what I call "Ugly Inventory" so that you find homes that can still pass an appraisal and not be "Subject to" so that you can do some TLC with repairs/renovations to borrow off of the ARV.