Should I consider legal action?

Should I consider legal action?

We also have a rental home we are wanting to sell and am wondering if the cost of building out a 1 bedroom 1 bath apartment complete with kitchen and living area would qualify to offset some of the capital gains when we sell our rental in the coming month? 

Second question, Should I go toward the top of my budget (qualified at $260,000 and currently looking at properties near that amount) at the start, or should I scale back and do a smaller property a little further away to test the waters and gain some experience with finding and managing tenants, but will allow me to easily afford the mortgage in the event of vacancy.Any advice, or criticism, would be greatly appreciated.

So, if your Self Directed IRA is 75% partner with another entity, then it must collect 75% of the profit (rental income, sold gains, etc), it must also contribute 75% of the expenses (rehab, insurance, taxes, etc).I am not sure about loaning to a partner. 

Hey everyone,I closed on a new property on February, the tenant sent March rent by mistake to the previous owner, who refused to send it to me, saying that this covers  the tenant's past owed rent.I have an email from the tenant stating that this amount was intended to pay March rent, so I think that the owner has no right to apply it to the previous rent owed, since it's not his money.Do you think I have grounds for taking a legal action based on the tenant email?

You're quoting the IRS instructions that have exactly zero legal weight.

in addition to above, (good advice), you dont have to pay capital gains tax on this when you sell if it appreciated in value but only because you lived there. if you turn it into a rental, you will be on the hook for capital gains tax

Make sure the garage apartment is legal.

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