(It is worth noting, I am not a lawyer so cannot advise you.)1) This option would minimize paperwork and provide good protection.  

Also because of my passion, and also because flips are really hard to find nowadays that have a good margin of more than 10% profit from the selling price.I started to do some digging in the main market that I am operating at right now and found a nice option that I liked:Find an old house in a good area in the city metro, demolish and build a new one on top of it a medium to high-end home.Why?

I guess everyone has their own game plan but there are states that are offering huge ARV potential and cash flow options. 

One of my friends recently asked me for advice, and I want to make sure there's not something I'm missing or a better option for him. 

There also are options for 5+ unit buildings where do not need to occupy and can even have more then one airbnb in city if own those. 

Quote from @Sam Shueh: Anything under 20% is problematic.Wanting income you get a multifamily on the next.Sam, you think a multifamily is a better option?  

They always have the option of asking you to stop contacting them.

I would add a step, that although is optional, is often used: Form an LLC, specifically for the use of IRA funds.

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates into 2025).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

Letting them know you’re casting a wide net can motivate them to find stronger deals to stand out among your options.