There are reasons why RIETs only allow very few non-accredited investors to participate.

According to the IRS rules you are considered to be a "Disqualified Person", furthermore rules explains that all transactions involving your IRA must the "arms length" which means that "Disqualified Person" can not be involved in a transaction directly or indirectly:https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactions

The 1st one you mention is also likely a security unless, as Greg correctly points out, everyone was actively participating in the deal.  

In my understanding, the barrier to entry in the NYC market is so high and the market itself is mostly an appreciation play, making young people like me who just started out without much experience and capital almost unable to participate.

An individual qualifies as a real estate professional for the tax year if -a. more than 50% of the personal services performed by the taxpayer in all trades or businesses during the tax year are performed in real property trades or businesses in which the taxpayer materially participates; The rental or any other activity that you do not materially participate cannot be counted. andb. the taxpayer performs more than 750 hours of service during the tax year in real property trades or businesses in which the taxpayer materially participates., the rental or any other activity that you do not materially participate cannot be counted.

But understand the houses that are in bad shape will have less  I do like people that are willing to move and participate in a  owner-occupant people involved and do a "house hacker" loan with a lower down and have tenants next door. 

., tax-free earnings) money.401k participant loans may not exceed $50k.The actual determination of which is optimal depends on an analysis of both objective and subjective factors, taking into consideration all possible configurations and their respective tax and investment implications.

Then you have to register for each auction that you want to participate in.

All participants have a Section 8 voucher and a case manager to help them remain in housing. 

Still passive income, even if actively participating.