I spent time and money to finally lock in one deal, which didn't sell until 2024.

Often times you will pay much more in taxes than if you pulled the money out, paid the taxes and penalty and then started investing in real estate.For example, with the financing you mentioned, the IRA must pay taxes on the portion of the profit earned by financing. 

I've been interested in real estate investing on/off over the last two years.  

Look at PM like homeowner's insurance- it seems like you are wasting money until your house burns down, they you'll be happy you "wasted" money on those premiums for years. 

If you're buying a true investment property (meaning you wont live in it), FHA is completely off the table and Conventional/DCSR will require 15%+ down.

Investment Info:Single-family residence fix & flip investment.

However since this is our first rental, we are getting cold feet and suspicion that it might be a money pit or go wrong drastically.

If you find a seller willing to carry a large note, that business is likely going to need a significant time and money investment from you post-close.Lesson 3️⃣ - It’s not that hard to be a good buyer.

(I also don't understand how you have a hard money loan with a rate of 7.25%...)offering an equity position that you then buy out in just a few years seems like way too much complexity and risk when you say you just need 30K. 

Do you prefer Flips or Rentals? Or does it vary by area