He was able to talk to the sister who has conveyed this information and is claiming to talk to her sister tomorrow.

Quote from @Ryan Daulton: Since learning that cash flow from real estate that was purchased from self-directed IRAs is taxed, and that I would not be able to claim depreciation on this property, what are the advantages to buying real estate with self-directed IRAs vs. other investment types like stocks and mutual funds?  

They claim that their clients are seeing a large return on their investment but would love to hear from somoene who has actually worked with them. 

Do they offer to help you collect or file a claim against them?

Would you rather her destroy your property, your insurance deny the claim and you're out all that money you just put into the rehab?

This may be needed to protect you from claims later.4.

Anyone know the names of the funds that Lee claims to manage?

RentRedi claims to be a system built by landlords for landlords and I have to disagree.

Here’s a deeper look:Legal Framework: The state likely took control due to unpaid MassHealth bills, which means there may be liens or claims on the property.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!