I have a very specific tax question regarding the UBIT (Unrelated Business Income Tax) exemption in Solo 401(k)s that is normally triggered by UDFI  (Unrelated Debt-Financed Income) in IRAs.  

Zillow says it may go for $289k +/-My current tenants are using it for business and pay $2,250 a month.

Assess historical data on property appreciation, rental income trends, and market stability.

Purchase price: $293,000 Cash invested: $135,000 Bought this single family house, and I am currently in the process of renovating it.

We're considering selling the property due to challenges of long-distance management.We're still interested on investing out of state and plan to gradually scale our investments over the next few years, focusing on areas close to Illinois, like Wisconsin or Indiana.Any suggestions on how to approach selling our multifamily property and buying in Wisconsin or Indiana in the current market would be greatly appreciated.

My goal, is tax saving with the STR loophole, but also some rental income.

Currently, the property is vacant.

A title report would be necessary to confirm whether or not there is anything preventing a current sale by the owner of record.

Quote from @Alex Moazeni: I agree with your current process.

My advice for conforming borrowers (FHA, VA, AA+, W-2/Full Income) is to check with your current bank or credit union with established relationship.