The financed portion of the gain would be subject to what is called the Unrelated Business Income Tax or UBIT.Unrelated Business Income Tax (UBIT)In most cases, people hold investment properties in their IRA for the income stream, not for flipping, so the UBIT is not typically a factor.

Obviously, people will always need a place to stay, but they might not necessarily need luxury vacations when times are hard.Still, all things considered and all other factors remaining the same....

If so, is that factored in to your numbers?  

I'm not sure what the management and maintenance fees you have factored in are.

oh how about exposed brick walls?

@Patrick Connell I think it's a combination of several factors leading me to the conclusion I either 1.

It's a factor that plays into my decision making but it's probably fifth on my list.

Some common desirable factors might be:* Proximity to a great school* Beautiful ocean views* Beautiful mountain viewsIn fact the investors' choice of Sokcho to invest is in large part driven by what they see as Sokcho’s inherent desirability as a location (ex: proximity to Mt.

As for solving the confusion factor some mentioned earlier in the thread, I open what my bank refers to as a zero balance checking account.

The neighbors mentioned they were occasionally spraying the outside steps as the bugs were just spilling out.I'm the kind of newbie investor that gets really excited about the potential for a property - I literally spent hours at a time in my first rental planning out the rehab and envisioning what I was going to do to the property to make it look great - exposing brick, reconfiguring upstairs layout, enhancing outdoor space, etc.