Note that if one were to self manage, then lower expenses would be expected since no property management fees are paid out.

. , @Jason Dillard is spot on with regard to eligibility for 1031 and the way to mitigate.If your goal is to be a fixer flipper or a wholesaler as he is and can generate the velocity needed then he's probably right in his assessment that you can make more cash flow flipping or wholesaling (although the net tax difference dissipates most of that differential). 

Our goal is to do flips 100% of the time but being self funded we can't pivot to a new job without the most recent one selling, so in between jobs we continue GC work for clients.

Even if you plan to self manage you should include this expense in your analysis. 

I have heard of 15K or larger assessments on each unit to make up the difference when repairs are needed and the reserves are not adequate. 

How do you assess the area if you're investing out of state?

Discussed with her that this may or may not hold up as an objection and asked what we could agree on.

I then was planning to use the self directed IRA to buy property through Roofstock.

Owner Financing Terms: $120K Purchase Price$3K Down$117K Balance - Paid Over 25 Years$400/month note0% InterestNo Pre-Payment Penalty - Actually 10% Deduction of Balance to Pay Off at 15yearsUnit A:Current Rent - $650Monthly Expenses: Note: 200Taxes: 28.71Escrow Services: 35Insurance: 100Property Management- 10%: 65Maintenance - 12%: 78Vacancy - 8%: 52Garbage: 13Total monthly expenses day 1: 571.71-65 while self-managed = 506.71Unit A Current Cashflow: 143.29Notes: Market Rents - Around 700-750Considering making tenants pay for garbageInsurance may go up as I have yet to review the policyEscrow services may be $35 for each property or $35 for bothUnit B: Current Rent - $475Monthly Expenses:Note: 200Taxes: 28.71Escrow Services: 35Insurance: 100Property Management- 10%: 47.50Maintenance - 12%: 57Vacancy - 8%: 38Garbage: 13Total monthly expenses day 1: 519.21-47.50 while self-managed = 471.71Unit B Current Cashflow: 3.29Notes:Market Rents - Around 650-675Considering making tenants pay for garbageInsurance may go up as I have yet to review the policyEscrow services may be $35 for each property or $35 for bothThoughts?

Owner Financing Terms: $120K Purchase Price$3K Down$117K Balance - Paid Over 25 Years$400/month note0% InterestNo Pre-Payment Penalty - Actually 10% Deduction of Balance to Pay Off at 15yearsUnit A:Current Rent - $650Monthly Expenses: Note: 200Taxes: 28.71Escrow Services: 35Insurance: 100Property Management- 10%: 65Maintenance - 12%: 78Vacancy - 8%: 52Garbage: 13Total monthly expenses day 1: 571.71-65 while self-managed = 506.71Unit A Current Cashflow: 143.29Notes: Market Rents - Around 700-750Considering making tenants pay for garbageInsurance may go up as I have yet to review the policyEscrow services may be $35 for each property or $35 for bothUnit B: Current Rent - $475Monthly Expenses:Note: 200Taxes: 28.71Escrow Services: 35Insurance: 100Property Management- 10%: 47.50Maintenance - 12%: 57Vacancy - 8%: 38Garbage: 13Total monthly expenses day 1: 519.21-47.50 while self-managed = 471.71Unit B Current Cashflow: 3.29Notes:Market Rents - Around 650-675Considering making tenants pay for garbageInsurance may go up as I have yet to review the policyEscrow services may be $35 for each property or $35 for bothThoughts?