You can divide profits as you like and each individual pays tax at his rate.

@Tim Brown  by selling it shovel ready you are not taking the next step into taxation of profit.. once you build those out you have created inventory.. right now you sell one piece you have much better tax treatment.. so unless your in the business and will be doing this over and over many times its best to do as @Andrew Kemler suggests.. less risk... plenty of reward.. nice tax planning

I understand the taxation is better with a LLC taxed as a CCORP.

Your tax preparer does not have to invest him or herself but certainly should know real estate taxation hands down. 

That changes the ROI in regard to depreciation ability and taxation.  

Prop Tax at 1.5% PMI at .5%  Note per month would be  675.40  x 12 = $8,104..    

So for this we need attorney help and also someone who can help in taxation matter.

I agree with @Larry Fried, IN is a lot more landlord friendly than chicago, and taxes are much lower. you also don't get hit with a city tax at closing... 

Will my income be subject to double taxation?

@Ronald ThompsonThe issue is that a self directed IRA may be subject to UBIT taxation in an equity crowdfunding environment.When a tax-exempt entity such as a retirement plan has an equity stake in a trade or business activity, and the business is a pass-through for tax purposes, then the tax-exempt entity is exposed to UBIT.