Additionally, the price point is still cheap enough to find the 1% rule and positive cash flow and there's amazing appreciation potential.

My idea was I could live there immediately and also do all the minor work that would not require an actual tradesmen, which would allow me to start building equity.

If your IRA receives an equity portion of profits from the business, it will likely have tax liability via UBIT that would be detrimental.Owning income producing real estate or interest from lending are passive activities not subject to UBIT. 

In areas with rapid and sustained appreciation, you can use the equity gained through appreciation to purchase additional properties.

Structuring a joint venture (JV) or equity partnership can make the deal appealing by offering a share of cash flow and appreciation. 

You have to be willing to sell your properties and access the equity to buy up. 

Also, adding this with getting 50K off the list price will put you in an even better position as a buyer.

You didn't write how much 'sweat equity' you put into this place, but it was likely well worth it given the $400K cash out.  

What the concept you mentioned is talking about is leveraging equity to gain cash vs. selling essentially. 

If OP can lever-up while maintaining adequate reserves, he will be in better position than buying with heavy cash position.