All it will accomplish is create a $800/yr tax bill from your lovely state.As to your question, read this thread:https://www.biggerpockets.com/forums/51/topics/1225072-do-i-... 

Hey, I sent you a message, would love to hear back from you!

The way you handled the owner financing and took on the full rehab speaks volumes about your vision and confidence in the property.

So how do I handle this?

@Mike Dumont so apart from some correspondence detailing how the funds would be handled, I would do the following.Colorado law gives the landlord 30 days to return a security deposit.

Lenders often require 30-40% down.Cash flow considerations – Since all expenses must be paid from your IRA, maintain liquidity to cover unexpected costs like repairs and vacancies.Rental properties vs. commercial deals – Residential rentals and commercial properties can both be great options, but keep in mind management complexity and income stability.Generally speaking, stay compliant – Avoid prohibited transactions, such as personally guaranteeing a loan, living in or personally managing a property, or transacting with disqualified persons (yourself, spouse, ascendants, or descendants).Diversify your portfolio – While syndications and real estate are great, consider mixing in other alternative assets like private lending, tax liens, or even notes for additional risk management.Work with the right custodian – Make sure your SDIRA custodian is well-versed in alternative investments and has experience handling syndications and non-recourse financing.If you’re looking for specific lenders who offer non-recourse loans, I’d be happy to point you in the right direction.

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean?

For example things such as how to handle certain soil conditions, working with certain agencies, specific water quality requirements (which you mentioned).

Could someone clarify how to handle this?

Originally posted by @Jonathan Mueller:@Jay Hinrichs I would love to see that flyer.