Example...if I spend 2,000 hours reading about construction, engineering, and local code during the year, does that mean I'm involved in the construction and building trade when I otherwise haven't left the arm chair?

It is a little scary at first and the more I can educate and arm myself, I think it's possible.   

Specifically make sure you understand "Prohibited Transactions":https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-prohibited-transactionsIt all boils down to this: all transactions involving your IRA/401k must be "arms length".

You could just put in regular machines and not give your tenants access...of course, they won't be thrilled the first time they run into you with a basket of clean cloths under your arm.

Ironically, that same data, which is published by the county later, is almost explicitly intended for commercial use then... but..not now????. 

Sure, I do know that there are HML that do long term and ARM's and shopping around I'm seeing that they are roughly 1% over conventional lenders.

This is "explicit".  

You can expect an ARM (adjustable rate mortgage), 15-20 year amortization, and 75-80% LTV. 

I own 6 STR units and manage properties for people in California and that are in the armed forces.

Fannie Mae explicitly allows you to move properties into a LLC.