Last month I had an unexpected replacement of sewer lateral $6500 and new HVAC of $4100. 

As with anything, you'll find people successful with it and some that are not successful - the factors above are what is important.Since you are using an IRA, make sure you have enough reserve funds in there to handle up front expenses or unexpected repairs.

I believe with the yield available from purchasing performing notes generally being below our target, and with the risk and pricing too high for most non performing offered, and so many hard money lenders originating in single digit interest rates, that we needed to get creative to invest our money for our portfolio to yield our targeted return, without increasing our risk.Yup some of my best deals are as lender with a participation component..

In addition, there are a few main components of the structure to consider: exemption status (506b vs 506c), equity split, preferred return, fees and waterfall hurdles.

In a nutshell, a building and all of its structural components are one unit of property. 

An emergency fund is vital, so set some funds aside for maintenance and unexpected issues. 

Cash in the bank is one component of that strategy.

@Sean HarrisonIf you're self-employed, you might be eligible for a Solo 401k, which offers many benefits over a self-directed IRA: Compared to an IRA, Solo 401k contribution limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.There is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)I'd recommend you reach out to a few providers who regularly post here on BP to get a better understanding of your options.

Here is the website:  http://madisoncountyreia.com/The first meeting is free (tell them I sent you) but there is a membership component. 

This is one of the components that determines the value of a commercial property.