He simply wrote a few smart comments and said he left 9K left on the job for me to pay (Even though it needs 20K total left to pay out, and that should be sufficient, and he said he might look around for a few fixtures he can throw my way, GOOD LUCK and Bye...So I have worked with this same contractor on 5 other fix n flips and we had a great relationship, and he talked about his faith and I thought he would at least try to make it right or at least apologize for spending 10 months on this job and he was sorry he dropped the ball, but he didn't.. he just said Good luck while I take the money you gave me for materials..

Since I'm local again, would you self manage the property and find the tenant yourself and forego the prop management company to increase monthly cash flow?

Hi @Conrad Metzenberg,I've also bought some AZ tax liens out of my self directed IRA after reading the 16% solution and this is what I can tell from my very short experience so far:- you'll need to do your due dilligence on the underlying properties, to make sure you're not buying liens on worthless land, there is a lot of that in AZ.

In order to get a loan to do this (since I am self employed) we may need to go with a private lender as opposed to a conventional mortgage, so we would need a larger down payment.

I know that I am considered a disqualified person as I am a family member with direct lineage.Is it possible for his separate LLC to invest in mine (listing him as a MGR in my LLC - or not), or is it still considered self-dealing or him receiving indirect benefits?

Dealing with 'regular' realtors, often is a sufficient enough hassle that some brokers will often frown at having to deal with the investor/agent.

It's often good to deliver this in person (if you are self managing) or have your property manager do it in person.

The old laws on the books, if enforced, were sufficient IMO.I guess the gov't wants all of the hundreds of thousands of people living in "Lonnie deal" homes to instead just rent their homes and deal with the cut-off water, the no air-conditioning repair, the roach and vermin infestation, the leaking toilet, the broken dishwasher that their landlord refuses to repair while the local courts get an influx of eviction cases. 

Mark C. these are good questions, which I have covered in some of my blogs (self promoting) sorry.  

I have also been kicking around the idea of a Self Directed IRA.