Well no one twisted me and hubs arm but we did sign up for the $10.5k level they had.

This is specifically what the Colorado nonresident statement is addressing.Colorado is one of the few states which explicitly mention this in their instructions.When you receive a state K-1 which reports positive income for a state, this doesn't take into account prior passive losses as it is up to the taxpayer to allocate income/loss to the specific state on the state tax return.

I invest with my SDIRA and while it's a bit more hoops you jump through (you have to be arms length away from the transactions, can't use "disqualified" parties etc.) it's worthwhile if you're going to put it into real estate.

. $6969/mo10/1 ARM. 6.5%. $5056/moWe currently have a 15 year fixed on our primary home as we wanted to go into retirement debt free on the primary home.

@Chris Seveney is right....you will likely pay way more than you planned to finish the project, but in my opinion, the most important thing to do is stop the bleeding by finishing or cut off the arm completely by selling the property.  

Chris Depalma It can appraise at a higher price because an appraiser will not view your purchase as a typical arms-length transaction because it is never exposed to the market.

If you go to their city website it explicitly states that.

My wife explained we had Arm & Hammer & were welcome to drop over for it.

They are a lenders attorney and deal with a lot of creditor rights and draft all our docs for us (note, loan agreement, personal guarantee) and work with title on deed of trust  I'm just literally starting out so the state is not yet decided but if my arm was twisted I'd pick Ohio. 

Rates, closing costs, and points also play a huge role in making the right move and can save you extra.You also want to make sure you have multiple terms like ARM products, Interest Only, No Prepayment penalties, etc.If you want to talk REI feel free to reach out I enjoy helping when ever possible.