How about using SDIRAs not to hold assets but to operate businesses?

Now you are telling me my critique of of your business model "gives you motivation".

So it sounds correct to collect all amounts into my business account then and send a 1099 to the owner reflecting what they received minus the PM fee?

I'm going off the understanding that you still need to spend 500+ hours in the business to achieve material participation (please correct me if I'm wrong). 

Quote from @Anil Shah: Since I read a townhome, I assume there is HOA - do they allow STRs?

This would allow me to stockpile rental income until I’m ready for the next investment, giving me more flexibility in the long run.Thanks again for your insight Yeah, I think a 15 year or 30 year loan is a better option because the interest you pay every month is lower and also you can pay it off in a short period of time if you want to.

Depending on how long it takes you to save up the amount, you might want to also allow for inflation on that amount for your continued savings.[2]   Read Rich Dad poor dad.[3]   Think about getting a second job - possibly a temporary job - save a 100% of the money.Just my 2 cents.

The other is a smaller operation which does a lot of business in the specific neighborhood the house is in.

Hey @Krissi Miramontes Small world, I have a former client in Fair Oaks, or at least her business is there.

@Michael James Hamlin I'm a former tax accountant/business consultant turned fix n flipper and investor friendly agent.