If your IRA was lending to the partner and only receiving interest, that would be passive.In order to have exposure to UBIT, a tax exempt needs to engage in a trade or business on regular or repeated basis, so if you only did such a deal occasionally it would be a non-issue.  

Eventually I would like to own a large apartment complex, but for now I want to start by acquiring a single family rental to get exposure to property management and finding good deals.

Not saying you can't have a reasonable contingency but loading up with make believe partners, inspections just increases your liability and exposure to legal actions. 

You're risking liability exposure if you don't address this promptly.Stop pinching pennies which could cost you $Thousands!

Looking at it from an upside to downside risk it would appear to me that you don't gain a lot, but have an increased exposure.

Wouldn't they get greater return by the exposure they get from the MLS?

Without the deed to the property in your name, that seems like a lot of exposure you take on without any control or any protection for your interests.

A Lloyds of London type of company is who will offer options.Aluminum has an increased fire exposure as it can't handle the electrical demands of today with all of the electronics.  

Sure there is always some risk of a market downturn but even bonds are earning a much higher return than 1% and Betterment allows you to control your exposure. 

Does my exposure change if I provide a lawn mower, or if the tenant buys their own?