Unless I wanted you to fail so I could get the building, and I had the $500k liquid to lend to you and then pay off seller when you fail.

It is perhaps my favorite meetup that is not associated with a larger group (such as SDRE, NSDRE, SDCRE).For the most part the lenders only lend on non owner occupied ADU, at low percentage of ADU addition costs because they know that usually the value extract will be significantly less than the ADU addition costs.  

Is there any instance in which you get liquidity but keep your name on mortgage liability? 

Illiquidity: Real estate is harder to liquidate quickly.You can invest the full amount but must use IRA funds exclusively for property expenses, keeping personal finances separate.

I think a lot of people will opt to rent and use their liquidity to invest in real estate instead.

The larger your portfolio grows, the better systems are. 

If you are thinking of just buying and holding one larger asset (or a few smaller ones), you could take out mortgages against the three properties and use that money as down payments towards new assets.

If it is a larger house and the renter group is families consider that moving in the school year is less common.

Most of what they recommend only makes sense from an operational standpoint if you are a larger investor and have a team to help you manage everything.Also, ensure your REI-savvy tax pro and your REI-savvy attorney link up during the entity structure creation process so things are optimal on all sides.Just something to keep in mind as you're beginning this journey.Answering your question, you'll want a checking account (minimum) per subsidiary entity and for your parent entity.

However, you can choose to do a Cost Segregation Study and instead of depreciating the property as a whole you depreciate each piece of the property some of which have a shorter lifespan and that allows you LARGER deductions sooner!