If the case was substantial, I would imaging your lawyer could subpoena the officers to have them testify to what they witnessed. 

@Brad Kanouse Using Traditional IRA funds for an investment property typically incurs income tax and a 10% penalty if you’re under 59½, as investment properties don’t qualify for tax exemptions.

Any tax pro who is familiar with REI will be able to help you.

@Ajay Bodas I have heard the same recommendation from my 1031 Intermediary and tax guy, but they both also said, "It Depends"... following this post to see what some other smart members know!

@Frank FloresInvesting in delinquent tax sales in Houston can be profitable, but it comes with risks.

I didn’t see your location in your profile or your post, but assume at least 17% state/federal taxes leaves you with $10k/yr. 

After collecting tenant pass-throughs for the year, do you pay the property taxes at the end of the year or the beginning of the next year?

Taxes: Be aware of potential transfer or capital gains taxes, depending on your state.4.

Do you think the state bar would have a problem with me calling myself a certified lawyer? 

You should consult a lawyer to completely understand your responsibilities and your liabilities as they are magnified when renting room by room.