It really comes down to your risk tolerance and long-term goals.

@Jay StraderI'm wondering the same thing - I had an attorney review the contract & basically all it said was invest at your own risk.

If you decide to take the partnership from a trial, to an ongoing long-term partnership, then get the attorneys involved and create an ironclad, partnership. 

All IRA-related transactions must be "arm's length", in other words, IRA can't get involved in any transaction with yourself, your immediate family members or any entities these individuals own or control. 

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

I think you have no choice but to convert to cash yourself.....no one is going to take the risk/hassle of converting afterward.

He then says he is going to get a lawyer involved if i dont feel like i owe him anything.

Congrats on becoming a realtor and getting involved with BP.

So if I do a good analysis of the property (including all the costs) and the property generates monthly CF with a DSCR above 1.1, I would be removing a big risk because the numbers add up.

If it concerns you that much, adjust the purchase price to take into account this added risk.