Unlike a traditional sale there is no due diligence period as part of the sale process.

Jason,I agree with your plan to use the DSCR.Any traditional debt impacts qualifying for future traditional loan programs.

Are either of these scenarios considered prohibited transactions:1) Purchasing a property with SDIRA funds plus my own cash.2) Purchasing a property with SDIRA funds plus traditional bank financing, then using my own cash to pay down the financing. 

I'm not aware of any other real-estate related options, and outside of having a business of some sort to have write-offs, I only know of the traditional things like maxing out retirement contributions and such.  

Landlord determines the amount they want coverage for, typically the same as a traditional deposit. 

This makes it to where I will not qualify for a traditional loan.

The Pro-Rata rule applies if your Traditional IRA contains both pre-tax and after-tax contributions.

The tax benefits are also great.Where interest earned from lending personal money is subject to ordinary income tax rates, interest earned in a traditional SD 401k retirement plan is tax-deferred or tax-free through a Roth SD 401k plan.

These traditional value add opportunities have worked just fine for us and would have continued to have performed well for us.  

Management of section 8 will cost more than traditional management so keep that in mind as well.