Often, your SDIRA account has a set amount of money in it... forever! How much do you need to have to cover repairs, insurance, taxes, management costs? Well if it's an IPX purchased property, I'm afraid to tell you..LOTS.
In the future I will show you the IPX prospectus on one of our properties showing how great it was going to work for us, but there is absolutely no accounting for repairs, landscape maintenance (trees need trimming, if you don't do it the city makes you) leasing fees, turnover costs when a tenant leaves. Did we ask about this? Oh, no, here's my sign.
Electrical, plumbing, a/c repairs, they just keep mounting up for us. Many of these issues would have been detected with a home inspection. Others are just going to happen. Our original IRA checkbook was set up with just $5,000 buffer per property, That"s barely enough to cover property taxes and homeowners insurance for the first 2 years.
Oh, but we have rents every month. Right! With 9% Deed of Trust financing, management fees, HOA fees their isn't much left over. And you don't pay a red cent on the loan principal. see bottom line post