But we managed to get through those minor hiccups.

The difference in the zoning and the actual use created some hiccup for the conventional financing underwriters.  

I have a desire to support uplifting/encouraging art in Houston, for the art (music, performing arts, visual arts) is the heartbeat of the culture of a city, help propel the local church I am a part of to new levels of influence and ability to help (they have a large prison and drug addict ministry), and to provide future employment/contract work that can help establish good character and personal development in said employees.Real Estate/Business has the potential to impact on a city level what would be nearly impossible to do in the position of a W2 salary, even at higher levels in the corporate ladder IMO.This impact potential gets me absolutely jazzed.And so since November I have devoured books, burned through podcasts, employed my excel and access skillz, joined a local REI club, met up with local investors, read numerous BP threads/blogs, and now begun the actual deployment of action steps.The beginning of March has marked the real start of a new endeavor along side my engineering day job... heading down the Wholesaling route, seeing as deals are the must-have corner stone for this entire business. 

Welcome @Donna Chaia, we work along side with real estate professionals all over the state of Florida.

Hedge funds and investors have driven the real estate market up three times the price since 2008.If and when we have another hiccup in the job market we could face the same situation, however wages have decreased and debts have increased.

It didn't meet the 50% rule, but that doesn't concern me too much, as she is good with money and would be putting up all the rent money and on top of that, has the reserves to cover any hiccups that could come along before she built up her reserves from the rent money.

@S TaylorThere are two ways for the IRA participant to invest alongside her IRA in real estate. 

So far, so good..even with a few hiccups.

No problem as long as there are no hiccups along the way.

Commercial lenders in many markets will lend at 80% LTV.I recommend finding out your commercial lenders' requirements (net worth, liquidity, DSC, etc.).Your HELOC should have more than $25k availability with a $145k increase in the property value (many HELOCs on primary residences go to 80% LTV...or more with some lenders).You could refinance one or both townhouses to tap into some equity.Keep in mind your post-closing liquidity and cash reserves.  15 year mortgages, a 20 year commercial mortgage, reasonably high leverage...all a recipe for sleepless nights, or worse, with certain properties and markets hit by a hiccup in cap ex, vacancy, or the market.