They are fairly common once you have built up enough equity.One tax issue that you may want to be aware of (if the commercial property is in an entity like an LLC) is the debt-financed distribution rules. 

Did you know their is a special type of distribution for a first time home purchase? 

They might take precedence over the distribution of profits.I'm not a lawyer, but I remember back in the early 1990s when California issued IOUs to everyone, including its workers.

It is tax-deferred to the plan just like dividends in a conventional plan.As a property owner, the plan would be responsible for property taxes as an expense of operation.The  tax-exempt retirement plan may also be subjected to any local taxes or fees, such as some cities levy on owners of rental property.The rental income is ONLY taxed in cases where an IRA uses outside capital in the form of a non-recourse mortgage.Otherwise, you are not taxed until such time as you take personal distributions from the plan, just like any other retirement plan.

I’m going to lay out all the numbers here and hopefully some people will chime in with their thoughts. 1 bed/ 1 bath condo in north New Jersey (~10 min bus ride to midtown Manhattan)May 2016 Purchase price: $270kDown payment: $54k (plus 10k in closing costs)Current market value (best estimate): $325kMortgage remaining today: $205kCash flow per month as rental: $300The way I am looking at this is I am deriving my “net equity” (net of selling closing costs) to be:$325k x 94% = ~305k, less 205k (mortgage remaining) = $100k net equity.Therefore, my RoE on an annual basis is $300 monthly cash flow x 12 = $3,600 divided by my net equity of $100k = 3.6%On one hand, it seems like I could use that $100k elsewhere and likely beat 3.6%.

Her having a nice new kitchen (if she cooks at all) will make everything much more tolerable; for you both.Also, a 203k will require you to have bids from licensed contractors, and they will have to do the work and the rehab funds they escrow will be distributed to them as they prove completion of specific jobs. 

It is across the highway from a closed Amazon.com distribution facility. 

Eventually the distributions will exhaust the cash, then it gets even more complicated, especially if I'm unable to put rental income back into the IRA. 

I currently own and operate a small distribution company that sells hand tools.

With 7500 new troops coming into Whiteman, the city council turning over and the new Dollar Tree distribution center it seems to be doing well there.