I would also listen to the BP podcasts and read and participate in the forums. 

Looking forward to participating in the forums.

Following is a good resource on the rules. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactionsAnother option is to open a solo 401k if you are self-employed and then you can borrow $50,000 once you transfer the IRA to the solo 401k plan.

I seem to recall there was stuff like a 24 hour on site manager required at all complexes (crazy and would put most small folks out of business) and a no income source rule that would force all but the higher end rentals into Section 8 whether they even understood it or were aiming for it (classic big penalty, stigma and lawsuit for violations).....I mentioned the small time folks may not all be interested in Section 8 or set up to participate and handle that market.Oddly, the assembly's goal was more housing, better managed housing, more affordable housing.

If you simply reduce the investor's participation in order to reduce the rate of return, you'll turn investors off because they see the sponsor getting too much of the action. 

For example, if we had to suffer a larger loss, we would split that loss (according to the 50/50 idea), but I would not participate in splitting his loss of initial capital (the money he put down).

So I was expecting more participation on this subject. 

I am taking this slow and have viewed only one potential home so far, just to get my feet wet and allow my wife to participate and provide input.  

Brenton,Be careful,  if you materially do NOT participate in your rental activities you cannot deduct standard 25k passive losses.

When the investment conversation and participation moves from the classes (the professionals, the experienced and the educated) to the masses it is an indicator of froth if not a market top.