so it sounds like if i get a loan using my SDIRA as the down payment, i would have yo pay UBIT on the loan amount. so say a loan of 100k with 1k per month in income. 25% down using my IRA. i would have to pay taxes on $750 per month for the first year. then slightly less than $750 the following year because now the loan amount has gone down, and eventually my taxes would become $0 if i held it for the 30year term or so.

I've narrowed it down the choice between two carriers and there's a significant price difference between the two, as one offers replacement cost and the other actual cash value.Purchase Price:202,500 Loan Amount: ~$160,000Option 1: $1500/yearCoverage Amount: $205,000 - ACTUAL CASH VALUE Includes: Liability, Earthquake, Loss of useOption 2: $2,800/year Coverage Amount: $500,000 - REPLACEMENT COST Includes: Liability, Earthquake, Loss of useI can't decide which policy is more appropriate to protect my investment.

You can borrow to the max or you can borrow more modest amounts.

Get caught behind some of those and you could be looking at losing a substantial amount of money.

Asset protection is a matter of personal choice depending on your risk tolerance and the amount of liability you're likely to encounter.

If developers pay a good amount for land then they like to line everything up before they buy.

@Jonathan Rosado I like the flexibility of the HELOC for short term funding- I take out the max amount once and use however much I need at the time I need it, VS refinancing my whole home (at a higher rate than I purchased it at too) and having that money sit around unused if I don't have a plan for it. 

And the amount of trash I need to remove from inside is un real.

And in the future, you may want to include a statement that says your signature is null and void after a certain amount of days; that way if they have not redeemed within a certain amount to time, you should be able to continue to make preservation improvements.This post is a little bit old, but I'd like to hear what happened in your situation.

If not as Lance Lvovsky mentioned that you need to make an estimated payment each quarter for the amount of the tax you will owe.