To trigger that tax, it must be an ongoing and regular practice for the IRA.Secondly, selecting and hiring contractors and subs and selection of purchases is not a prohibited transaction, but I would agree with others in that the scenario you presented is too convoluted and could cause issues, something you should avoid.

Today I was told that it was randomly selected for a USDA audit and can't close until next Tuesday at the earliest.

I think I understand the basic mechanics of the fix and flip and now I want to select a market to really understand its ARV and then begin looking for deals.

The criteria I am using, which I am basing off recommendations from members on this site consists of:- Equity: 40%-100%- Property Type: SFR- Bedrooms: At least 3- Absentee Owner- Exclude Corporate- Exclude Trustee- Last Market Sale Date: Pre 2006From this list, my screen is yielding only 119 addresses (with my selected area yielding about 130,000 addresses before adding any additional criteria).

It states only select lenders and only a few are in my area.

Under my scenario described, I would be actively involved in advertising and selecting tenants, collecting rent, paying all expenses, and keeping what's left over.

I am interested in knowing which selections you used when applying for the EIN as none of the selections seems quite right

It's a lower income area and I'm finding the selection isn't as as good as with my other property which is better located in a college town.

I would be getting a half dozen quotes see if you cant do a lot better.I recall when I was doing my HVAV contractor selection, prices for the exact same equipment, same project, from six different companies, ranged from 5,800 -12,000.

Last night (day 12) we made a selection on tenants and will be signing the lease tonight.