If you're looking at an FHA loan to live in for a while and then go do it again, you'll have to prove that you're relocating and that you're establishing residency "outside the reasonable commuting distance from his/her existing primary residence."

This is a primary reason your CCR is so low.  

I'm considering buying this for several reasons.

For financing reasons I bought it in my name.

They call these "bandit signs" for a reason.

Real contractors don't want to take on something that someone else started, some cite liability reasons.

Is that reasonable?

If you understand real estate as an asset class and can get better results for the IRA by having the IRA invest in real estate, then such an plan is superior to having 100% of your retirement savings in market-based assets.An IRA (self-directed or otherwise) is reasonably well protected from lawsuits that stem from you. 

A previous landlord really has no reason to lie, and you may get a more accurate picture of what kind of tenant the applicant would be for you. 

But you should at least inquire what's the reason for it and make sure you're comfortable.