You can finance the purchase of an investment property in an IRA, but you must use a non-recourse loan, which typically requires a 30-40% down payment.

In non-commercial residence (<5 units), the vacancy is large impact to cash flow s as nd it typically is worth having rent not at the top of market.  

Typically most lenders will require a minimum loan amount of $100k and a minimum AS IS value of $100k for a fix and flip loan.

For example, a buyer putting 20% down on a $500k home would pay around $500k in interest over the life of a typical mortgage at current rate around 6.5%.

Rates are typically higher than a traditional cash out refinance, however at least you are not getting the full loan amount + you have the flexibility to draw/tap in the money whenever needed.

They are strictly taxation.If you are setting up a trust, you should get a CPA.Find a bookkeeper for your daily driver, if you find one that focuses on real estate, then during year-end your CPA won't charge you an arm and a leg.

Another way is to switch your product from 30 year fixed to a 5/1 ARM so now you're taking program or financial risk to arrive at a lower rate such that you can pass this FHA SS rule (5/1 ARM FHA has a lower rate by up to .50% than the 30 year product typically).

Typically 5 units or more are considered commercial.

@Jessica HowellIn the operating agreement we typically put like $1,000 as initial contribution.

What are you talking about.All of the other investor-members above laid out an easy solution for a typical problem and also accurately stated that a lawsuit is unnecessary and won't work.