.* Tenants pay a NON-Refundable Option Consideration Fee in order to receive that option.

As George mentioned, there may be other ways to structure this or similar investments that will not trigger UBIT.

Also, how much consideration is there for the improvements that were made? 

After a few estimates and in and out the property, I pulled the trigger and got the person down a couple of grand to replace the roof.

Thank you in advance for your time and consideration.  

@Natalie Kolodij, I agree with the others, 2% are harder to find but are out there if you are ready to pull the trigger when they show up.  

Yes, these rents are considerably under market! 

I know it's boring legal language but it's really important for you to understand how the policy is triggered and how the carrier can avoid getting involved.Best of luck with everything!

If the property has not changed hands in a long time the current owner may be paying taxes considerably below the current assessed value--that value will be stepped up for the new owner.

My wife has a pretty good job and aa great boss that has been very considerate of my situation.The math anaysis side of investing is very important and must be done before all offers as well as looking at the prospective property or at least have a clause in the sales contract that allows you the time (about 10 days) to make a detailed inspection and possibly back out of the deal without a penalty that would hurt to lose.