Family will play on emotions when trouble hits. 

When an IRA receives income from a trade or business on a regular or repeated basis, it can become subject to a tax known as UBIT which is meant to level the playing field and protect tax-paying businesses from unfair competition. 

so look at potential it could be a fantastic play and if you can easily afford it so what..   

@Sherry AddyI do have a rental in millington and I know it’s the farthest drive in our portfolio You are right on the prIces They have gone up In last three years the value play Is In a fIxer upper nowadays requIrIng 15k rehabsBest of luck in your search

Account ClosedIncome taxes are normally not calculated in cash-on-cash return calculations because everyone's tax situation is different.For sake of comparison - the cash-on-cash return should be comparable on a level playing field.Person A - $100 return on a $1000 investment.

The conundrum is that I’m playing with speculations on the housing market.

Leave those to the highly experienced and often local investors who understand and do not mind the high-risk play of investing in low cost rentals. 

Also, it really only comes into play if/when the bank completely takes the house back over.

While benefiting from a great location and solid bones, and a good rental history, there is no denying that the dearth of inventory and the general frothiness of the real estate market must have played a role. 

Yes, cash flow play only is my mentality.