Because of this, he could buy properties and demonstrate the intent to hold for investment purposes and not "held for sale in the ordinary course of the taxpayer's business."

To read more on prohibited transactions, see Internal Revenue Code section 4975.Another thing you would need to keep in mind is that, in order to partner your personal and IRA funds to make the investment (only permissible at the time the home is purchased), technically you would need to be able to demonstrate the means to purchase the home personally, without using your IRA.

You do have a goal, to demonstrate to your kids that it can be done successfully, but you can simply hook them up with some local investors to show that.So you are saying both offers have been accepted?  

"Even if you only spend 15-20 min googleing and compiling some of the data, it shows self motivation and may demonstrate that you know enough of the basic key concepts and variables that an investor should be concerned with, so in turn you stimulate the pros and master level posters to want to add real in depth value, that is deeper or more insightful than what can be determined from a 15 min google search.

You demonstrate that every day which does make you a VERY wealthy man!

Also, banks must demonstrate a certain amount of CRA lending.  

Inspection time is a good opportunity for both parties to reconnect, nurture the relationship and demonstrate they are fulfilling the terms of the agreement.

The only time there would be an issue is if the IRS could demonstrate some sort of tax avoidance structure involved. 

Since you have already demonstrated that you are not knowledgeable enough to be a landlord at this point, hire an attorney, and use him to get this person out.

He already demonstrated that he cannot stay on schedule because he's so busy - and he's busy because he's cheap.