A lot of real estate professionals (including myself) give thoughtful responses at least in part to drum up business.

If you purchase via an IRA (as opposed to a 401k), you will need to open an IRA account at a specialty trust company which allows for investments in real estate.

We both have fulltime jobs, but we would like to replace those and work in the real estate business.

You are going to pay a fairly high price to purchase, you are going to have fairly high rehab costs, and you will have a high interest rate on your mortgage.  

Starting your journey in real estate investing can feel both exciting and overwhelming.

I have contacted couple of real estate agents, they want me to fly in to look at properties.  

I would by real estate in cities that have seen large negative decreases in sales prices but are still positioned for population growth.2.

When we purchase a property, we have CA fees (title search, owners title insurance, lender's title insurance, attorney fees, etc.) and when we close/sell a property we again have CA fees. 

Purchase price: $82,000 Cash invested: $1,000 Sale price: $132,000 Off market (direct mail) purchase then Wholetail

My assumptions based off research is I will be able to deduct 1/2 of all allowable expenses based off the ADU square footage (My understanding of that list below)  1/2 Mortgage Interest (Not principle) 1/2 Utilities 1/2 Property Taxes 1/2 Insurance (assuming I don't have separate ADU insurance)  1/2 general house maintenance (depending on the issue and if it's related to the ADU)  1/2 Depreciation (Home value, not land divided by 27.5)  KEY QUESTION: If my mortgage (PITI) is $5400, and all of those ADU deductions equal $3800 monthly, and my ADU income is $1800 monthly, am I allowed to pay the difference in "deductions" from my real estate business income?