DC Non-Resident?

I am guessing you guys are non-accredited investors.

There thinking goes something like this - I can buy this great property for $5 million cash flowing $600k per year (they neglect expenses).  

This way it is a non-issue.

However, I'm in the middle of a cash-out refinance of an investment property I already own.

There are some great neighborhoods here that balance cash flow and appreciation, like Fountain Square and Bates-Hendricks, and parts of Irvington.

You will see on the form I linked the 1120-2 portion:As you can see you are able to ADD back into your K-1 income non recurring losses, Depreciation, depletion and Amortization. 

I have enough remaining entitlement to pursue this as well as down payment funds available.

You can pull cash from the property that you IRA owns by selling it or doing cash-out refinance (must use non-recourse financing) and then use the proceeds to acquire another property.

But of course were running into the same issues as everyone else, finding a property that actually cash flows, specifically when rented out the traditional way with just one person on the lease.