The rental return based on your purchase price is pretty decent and if you have a long term tenant it isn't too bad (most of the negative cash flow is coming from paying down the debt, which in my opinion is not too bad, and also on paper you'd be losing a lot of money and that helps with your taxes).

He brought up the concept that the owner only owns the deed but that he had paid 8k for the house just three years earlierA few weeks later I asked him what's the latest with the house and he said that the supposed owner of the house only owned the deed but not the house itself, and therefore had no rights to the house?

@Richard C.I can appreciate your concern for the seller, but I don't appreciate your negativity... it's a better use of your time to motivate newer investors, versus providing destructive criticism.

So, from these numbers it’s clear that the PMI, low rents, and somewhat low (10%) down payment are reasons why the cashflow is currently negative.

@Jay Hinrichs Due diligence...hmmm...novel concept! 

@Brittaney Woods The concept is mostly there but your numbers are off.1.

@Loren Whitney  & @Dmitriy Fomichenko .......From what I am hearing you guys say about depreciation within a SDIRA, it sounds like (I could very well be interpreting it wrong too) that IF a person was to use leverage within the SDIRA, that somewhat or mostly negates peoples argument 'that there is no benefit to hold real estate within a SDIRA' (meaning no depreciation benefit).

I'm glad you asked this question because I am having a difficult time understanding the entire "refinancing" concept as well.

I agree on the fact I'd be break even (more than likely I'd be negative cash flow).

You do have to either be military or family to have an account, but it's worth it for those who qualify.One negative is that closing takes 45-90 days (at least according to their loan agents).