I reside in Texas, no income taxes.   

Thanks,GeneOne can move old IRAs into a self-directed IRA (Equity Trust, Inspira/Quest, Etc.) and then use the funds to invest in or buy and hold real estate (also other alternative investments). 

If there isn’t significant equity capture at this purchase price, and it’s not in a great location, this would be a pass for me.

Some want equity which is a little tougher to structure but possible.

Or do they leverage debt, and use the subsidies to cover the equity needed?

If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.The most common scenarios they typically prohibit are:- Gifts of Equity- Bailouts- Leaseback OptionsAt the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.

I have on multiple occasions, once with one of my own properties and a few times for clients been able to not only get the money they paid for a property but also gave them extra money in a total loss (protected the equity that has accrued due to inflation in the industry).  

I would keep as much liquid as possible and essentially get you to 20% equity or more by renovating the property. 

That is lower than market and puts you in a cashflow-neutral situation, but it is unlikely your residents can afford that.

If the seller has equity at the closing table part of the proceeds could go towards the utilities being caught up.