@Michael Smythe wow great insight thanks.

Any thought are greatly appreciated and welcomed

If there is debt on the property you run into the debt-financed property issue which can cause the rent to be treated as UBIT and be subject to the trust tax rate which increases to 37% extremely fast.

I realize all attorneys differ and it could be hourly or flat but I want to do some research before hand.The plan is to sell as I have no interest in keeping it so there won’t be any repairs, if any, until the redemption period is over.

@Craig Imazumi I would recommend you connect with a fellow investor/realtor in the specific market you are interested in.

I have been interested in Real Estate investing since I began college in 2015 and always knew thats what I wanted to do in the long run.

So we are not in agreement.I sent this to my tax accountant https://www.investopedia.com/terms/p/passiveincome.asp.She sent the IRS link to me https://www.irs.gov/pub/irs-pdf/p925.pdfI wonder how your tax accountant treat your private lending interest?

What made you interested in investing in this type of deal?

DM me if you, or anyone else reading this is interested in learning more.Thanks,Paul

Agreed, if the rent the tenants are paying works for you (i.e. on or close to market value) then it can be very much a positive.If they are paying under current rates then that's more of an issue.