Is there a way to utilize part of my Traditional IRA funds as a down payment on a SFH investment property without being penalized? 

The document or whatever instrument allows this would ensure that the obligation to pay for the mortgage and expenses (Taxes/utilities/maintenance etc...) falls to the corporation and not myself and would be paid directly by the corporation so as to not look like income in the form of a transfer from corp to me to lender. 

However it could be location,  Common area, size, laundry, tenant qualifications (in rough areas you are not going to get many tenants with unblemished credit), parking, look of surrounding properties, etc.   

If these are the common lawsuits all CRE professionals have, I think we have some big problems in the industry don’t we.

The most common benefits a landlord can get from an arbitrage agreement are: reduced vacancy expense, decreased maintenance costs (most arbitragers agree to fix any damage done by guests), increased rent (most pay a premium), reduced number of hours managing the property (aka it's more passive)Some less common benefits, but still worth mentioning: Using the property to host their own guests at a lower rate during the "vacation season", Revenue sharing, arbitrage managing landscaping, and other management tasks. 

If there are common areas in the commercial property, then sure you would need to do the accounting regarding who pays what and what's collected among the various tenants. 

As a region, the phrase “The Poconos” is linked to a wide variety of areas that have much of the same allure in common.

They thought their business was a technology business with a financial component, not understanding that it was a financial enterprise utilizing a technology platform. 

Through agency debt at ~67%, pref equity from an institutional investor and common equity from our investor-partners.

So just utilizing the code will allow them to enter the property.