Any pitfalls?

There are several properties being auctioned in my area, but I want to avoid any pitfalls associated with this type of transaction (title, occupancy, etc). 

I'll be using standard syndication techniques for the raise, but just want to learn about any potential differences/pitfalls to the retail rental model. 

There are a ton of empty lots across Detroit, which seem in theory like "easy" places to pop up a pre-fab SFH or small multi.I did some preliminary research here and via Google and see that most people's experiences seem pretty positive with key draws being the cost = less than or equal to standard construction, materials being eco-friendly and sturdy, shorter construction time, similar appraisal value, to name a few.My questions:Can anyone share any experiences specific to Detroit or the surrounding area with regards to permitting or legal pitfalls to avoid or hurdles to jump over?

Some of the potential pitfalls have been elaborated above, but here is a direct link to the IRS rules explaining the details:https://www.irs.gov/retirement...I understand your disappointment after your conversation with the custodian and broken expectations.

You don't have to worry about competition, bad contractors, or the other pitfalls you see with older rehabs.

Though I was already clear on my numbers and motivations for this property before posting, just poking around to see any potential missed expenses or pitfalls. 

I know there will be pitfalls along the way, lessons learned, but I'm trying to mitigate some of that as we go along.

I'll be sure to do my due diligence so that I can avoid the pitfalls in which other investors have failed. 

A good mentor has experienced the ups and downs of different markets and strategies and can help avoid the pitfalls of different markets.