Which renders you subject to business, net profit, and school tax filings each year. 

Also keep in mind that if the basement is below grade it won't meet minimum standards of fitness for human habitation:"No room or area in a dwelling may be used for habitation if more than 1⁄2 of its floor-to-ceiling height is below the average grade of the adjoining ground and is subject to chronic dampness."

Sahegin, see the attached HardMoney worksheet from BP which outlines some of the expenses including points, holding cost etc., This might help a bit.

It would allow the community to register a silent opinion without invoking raging arguments between individuals which typically get off the subject quickly. 

You will find everyone has a different opinion on this subject.

The other thing to keep in mind is that in DC if you own 5 or more units you will be subject to rent control.

As a checkbook holder and trustee, you have the control to fund these investments and the decision making authority to structure deals to your liking (shorter term, higher interest, etc.)I'm sure it's just how you chose to word it, but I will caution you anyway that "becoming a lender" sounds a bit like a business whereas what you are doing instead is directing your 401k to make passive investments.The key needs here are a way to contact and negotiate with those who may need loans and some appropriate loan paperwork to outline the terms and secure your 401k's interest in the investment.

(I sure hope your out-of-state experience goes up from here.)BankruptcyIf the tenant files bankruptcy, the eviction process is subject to the automatic stay in the bankruptcy case, and if an eviction action has been filed, it will be dropped from the State Court’s docket to be reset if the tenant’s bankruptcy case is dismissed.When a bankruptcy case is filed, we usually negotiate a Consent Order Conditionally Terminating the Automatic Stay.

Do what is average to the subject property in that neighberhood.Always remember to do the math analysis and try to look at the property before making an offer, especially on the first ones.  

Any investment in improvements would have been capitalized as basis and thus subject to depreciation recapture.It is not an all or nothing transaction however - you can do a partial exchange, but will owe tax on the amounts not reinvested.