I feel these are insanely good numbers for non Bank loans.Fin of Am, allows lower FICO, lower reserves,  just slightly higher interest rates, but a 5 yr pre-pay penalty.   

I consider the type of care that needs to be taken to avoid fraudulent investments in a self-directed retirement account to be on par with the level of care needed to avoid fraudulent investments with non-retirement money.As for self-dealing, you are correct that these accounts are for your benefit later on (presumably in retirement).

The seller has verbally told me that both tenants are current on rent.

Would that fall under fraud/ concealment / non disclosure. 

At that time it was a buyer's market and it was impossible to sell the place FSBO at a non-short-sale price and realtors were actually turning me away because my place didn't have the curb appeal that they thought they would need to attract the few buyers there were in the market (opposite conditions to today where every realtor is thirsty after a seller lead!) 

My guess here is that you would be responsible for capital gains AND depreciation recapture on the non owner-occupied side IF you claimed depreciation loss on it.

They have what appears to be a non-working vehicle parked on the property. 

A normal title company might vapor lock over a non standard deal like this, but your RE attorney can create all of the required paperwork to get this deal closed. 

I know that licensed agents can't give a finders fee to non licensed agents but what if we we're both unlicensed?  

They do use satellites now to catch additions that were done non-permitted.