There are a lot of books written by securities attorneys that describe the legal framework.  

Thanks Ty.Thanks Bill, this gives me a good framework to start with in terms of constructing my approach when I make my calls to FSBO homes :)

Have some trepidation diving into a market where I don’t live, so any advice on setting up the best framework for out-of-state investing is welcome! 

My understanding is that my agent only provides a standard contract and I should use it only as a framework.

The basic framework is that I'm entering into an agreement for a split (60/40) of the profits.

Other profit centers (mortgage paydown, appreciation which may be negative in your case, cash flow over the full life, and tax benefits) ... project them all out using long term average historic appreciation rates (CAGR over decades spanning multiple RE cycles, for both rents and prices) for that hood and compute IRR ... this will give you a much more complete and realistic picture of how the investment is most likely to perform.This is the analytical framework for how to assess the financials ... the important underlying question though is why are prices so depressed and not keeping up with inflation?

The best way to combine them all within a single analytical framework IMO is to project the financials out and calculate IRR.

And I would need significantly more details on the property before I can even offer a framework for how to analyze this deal.  

Do a bit of reading to set the framework and think of the questions you might ask, then reach out to one of us for a thorough analysis of your situation.

Anybody who is telling you that you may not administratively manage an IRA owned property is facilitating their business model rather than providing solid legal guidance.What we do work with is the framework if the IRS guidelines as outlined in IRS publication 590 A & B and Internal Revenue Code section 4975 dealing with disqualified parties.