This is a pretty big bonus for smaller value and/or first property situations, and will have less impact as your portfolio grows.The final net tax amount is run through the trust tax table.The $100K property example here, 60% debt-financed and assuming 10% income would result in an annual UDFI tax of about $180 to the IRA.  

If a property is rented for 800.00 with annual taxes of 1,100.00 vacancy of 7%, no management fees, annual repair on maintenance of 10%, and $540.00 for taxes, you can spend 54,780.00 on a property and get a 10% CAP. 

The costs would be:- $425,000 financed at 4% for $17,000 annual- $10,500 property tax- $2,750 insurance- $120 annual HOA- $1,800 lease commission- $1,800 M&R allowanceTotal annual cost:  $33,970 annually or $2,830 monthly+ 15% Profit:  $39,065 annually or $3,250 monthlyWhat are your thoughts or questions on a deal like this?

Asking $795 for one and the other is $650 (not sure why so low).10% vacancy ($2880)$800 rent ($3200)$333.33 taxes ($4000 2015 taxes)$133.33 ins ($1600) (called insurance company and gave them address for a quote)10% R&M ($3520 per yr)10% capX ($3520 per yr)$1,106.67 Monthly GOIReturns -20% COC9.28% Cap Rate$1,453.33 Monthly NOI $17,440 Annual NOI$8,295 Annual Cash Flow$691 Monthly Cash FlowWhat if anything am I missing?

You can do an option with a one time option price payment, if you string several options together, besides probably not having a true option, you're back to a financing arrangement accepting annual payments that are reducing the sale price. 

Market or Appraised Value $525,000 Purchase Price $525,000 Repairs/Punch List $1,000 Closing Costs & Fees $1,500 Total Cash Investment $527,500 Monthly Rent (GSI) $1,000 Annual Property Tax $5,000 Annual HOA Dues $0 Annual Landscaping $0 Annual Insurance Premium $1,104 Vacancy Rate (% of GSI) 5% Maintenance Rate (% of GSI) 5% Property Mgmt Rate (% of GSI) 0% Gross Scheduled Income (GSI) $12,000 Less Vacancy Amount $(600) Gross Operating Income (GOI) $11,400 Annual Operating Expenses Property Management $0 Annual Property Taxes $(5,000) Annual HOA $0 Annual Landscaping $0 Annual Insurance Premium $(1,104) Repairs & Maintenance $(570) Total Operating Expenses $(6,674) Net Operating Income $4,726 Less Debt Service $0 Before-Tax Cash Flow (BTCF) $4,726 Cash-On-Cash ROI 0.90%

(Total annual cash flow = -$1,334, Cash ROI -1.89%, Total ROI (equity, etc) 3.16%)(Year 2)($18,859 NOI) @ $276,000, %20 down, and at the renovated $28,800 gross rents.

We're at rent of 1.2% of "purchase+rehab" on the 2015 properties, which is a >14% annual return.  

I am actually getting ready to record an educational piece on this and will have it on YouTube soon but until then here are the factors that are considered.  1.Age of the property2.Demographic location and crime statistics3.Average household income4.Geographic and economic growth projections5.Annual appreciation forecast 6.Monthly Rental income7.AmenitiesAnd here is a break down based on the Texas market. 

There fees are seemingly reasonable from an annual fee standpoint, but you CANNOT get any timely response or paperwork out of them unless you pay for expedited processing.