We've been told that once the house has been rehabbed we could go to the magistrate and make a case for repairing the whole house and the lien could be reduced to less then $5,000 for administration fees.

You may see signs of gang activity, drug dealing, prostitution, etc.  

I would go with an administrator that sets up the IRA and an LLC.

The buyers are trying to say they bought the briefcase, not the drugs inside in their back alley transaction, getting a good deal.

Wholesalers try to skirt laws and usually trash standards of ethical  conduct, it's like a back alley drug deal, under  the radar of regulators......and you want to put it on the internet? 

Local to me many of the properties that look vacant from the street are actually drug labs.

Otherwise, you may look like you're justifying the value of a drug dealer to an addict. 

There are some good calculators on the web such as the following that will help you rough the numbers for such comparisons, but you should always consult with your licensed tax advisor before doing a Roth conversion as there are so many factors specific to your individual situation that come into play.Roth IRA Conversion CalculatorAs for flipping houses in an IRA (Roth or Traditional) this is something that you can do so long as you keep your involvement administrative in nature.  

Liz holds her Masters in Business Administration and is a Certified Project Manager with two courses from a Masters in Project Management.

I've been administrator around (16) times myself and done playing fiduciary-turned-alligator wrestler.PM me if your principals want my help.