I would assume it is possible for the non-fund member of each LLC to use leverage and the fund to receive only a direct return on provided cash, but that would be unusual.UDFI exposure and a failure to report would not invalidate the IRA or be catastrophic as a prohibited transaction would, it would just be expensive. 

Trying to be too cheap (Time or Money), not willing to spend a little up front to avoid a catastrophic failure later. 

i also know people dont like them bc you are turning unsecured debt into secured debt....but that rests on the premise that you default...i dont plan on defaulting and given our situation...it would take a series of COMBINED catastrophic events for us to find ourselves in a position where we cant pay 2600/month. i do understand that by using the HELOC in this manner...i end up paying a lot more over the long run but again....does it matter how much is paid when it is being paid by someone else?

If your buying a nice property there shouldn't be to many catastrophic costs coming up soon.

They're extremely dramatic, and everything is catastrophic. 

So glad you've lived smartly and saved along the way to prevent your loss of a w2 as the breadwinner from being a catastrophe. 

All of my offers have limiting clauses on inspection that say I will only readdress or ask for credits in the event of a major (or catastrophic) foundation, structural, electrical, plumbing, or environmental issue.

Consider a renovation loan, which will increase your mortgage payment but will also increase your cash flow since you get rid of those catastrophic utility bills.This looks like a decent investment for the fact that it has an easy way to increase the value of the property.

We will be installing a sink in one of the 'bedrooms', but no range, w/d hookups, furnace, etc. so when we eventually want to sell, those items can be easily removed.Rentals are currently in huge demand in our area - we had a catastrophic wildfire about 10-15 mi from our home and people are desperate for housing, but I am becoming concerned as I've seen people recommending lying about ESAs to get their pets in rentals (we have 2 dogs already and wont accept pets), people reporting rental listings to the AG if they think the price is too high (gouging), along with the general worry over destructive/abusive/etc tenants.

SEVERITY axis will include something like: catastrophic, critical, moderate, negligible.