Restoration contractors deal with insurance losses daily, may already have a relationship with your adjuster, and will submit a proposal for the cost they need to have the work completed to "pre-loss condition" and your standards.

@Robin Searle @James Carlson, have you seen the news on the new proposed bill in Colorado to reclassify STR’s to commercial property?

I proposed to the owner a payment of $100 per month principal and $25 a month interest with a 7 year balloon and she agreed.   

I'm proposing each partner put up 50% of the down payment and any fees related to closing.

@Daniel DietzI’ve done it and we have many clients who have done exactly what you are proposing. 

Do I propose that I do all the work/management of the job?

The contract he proposed is to:purchase the house (20k above their purchase) for 75k.I put 10k into it to fix the roof and HVACHe puts what he estimated as 12k or so to rehabHe believes he can sell for 140k easily FSBO - or use flat rate MLS listingA recent comp nearby (only 1) shows a similar sized, but newer home, much less land, sold for 150k The house needs some new drywall, paint, unsure if tile is still OK, kitchen rehab, 2 bathrooms rehabbed, probably carpet in the roomsMy holding time is 90 days to sell apparently in order to qualify people for FHA loansIs this a good place to put limited supply of my money? 

Not all areas in markets are the same...which is why I try to find the micro-market within a market.We've read here a lot from those that did the same, or similar, thing proposed here successfully. 

From my families first impression and some research on my end, im interested in anything close to the downtown (which looks like there is a good amount of investment proposed), something in the dundee/ aksarben area which they say is kind of a hip and up and coming area, or something in west omaha (more expensive but better neighborhoods etc.) 

While the definition of what constitutes a disqualified person is detailed and complex ( See IRC Sec.4975(e0(2)), the IRA participant will always be considered a disqualified person with respect to investing the IRA in real estate for personal use (whether for partial or full use).The proposed transaction would specifically violate the following prohibited transaction rule. transfer to, or use by or for the benefit of, a disqualified person of the income or assets of an IRA;https://www.irs.gov/retirement-plans/plan-particip...