@Brad Herb Investing in a syndication via a Self-Directed IRA (SDIRA) offers tax advantages but comes with fees and limitations:Advantages:Tax Benefits: Gains grow tax-deferred (Traditional SDIRA) or tax-free (Roth SDIRA).Avoid Penalties: Keeps funds in the IRA, avoiding early withdrawal penalties.Diversification: Adds real estate syndications to your retirement portfolio.Disadvantages:Fees: Setup, custodian, and administrative fees can reduce returns.UBIT: If the syndication uses debt, income may be subject to Unrelated Business Income Tax (UBIT).Complexity: Strict rules; all income/expenses must flow through the SDIRA.Illiquidity: Syndications are long-term, locking up funds.Use an SDIRA if the investment is significant and the UBIT impact is minimal, especially with a Roth SDIRA for tax-free growth.Remember that RE, outside of retirement accounts, provides the biggest tax benefits.This post does not create a CPA-Client relationship.

@Alex Del Rio welcome and congrats on Real Estate Professional Status (REPS) this brings with it a lot of tax benefits that you didn't have access to before.

If not feasible, consider increasing rent, reducing purchase price, incorporating future benefits, or targeting multifamily properties.

If you are looking for long-term appreciation, another asset might work better, but you won't get the same benefits of being able to go visit it.

Thanks folks, it seems like overall it doesn’t make the most sense to start an LLC for real estate purposes due the cost and complexity, with few benefits here in California.

Yes the financial benefit is attempting, but I do want to understand all the legal consequences, including insurance issues before making a decision.

I continue to pad my social security contributions full-time with the hopes of maximizing my retirement benefits.

It will familiarize you with the basic terminology and benefits.

Benefits: This strategy is particularly useful for high-income years, as it allows you to defer taxes and increase cash flow by reducing your immediate tax burden.A cost segregation study can be especially beneficial if you plan to hold the property for several years and want to maximize deductions early, but just doing cost seg is not helpful.

You could also wWork closely with a CPA to maximize depreciation benefits and reduce your taxable profit for 2023 and beyond.