I believe this would all be taxed at ordinary income rates since it is a distribution from our IRA (plus 10%) penalty if you have not reached retirement age (looks like retirement age since you mention RMD).   

Most will even do 20.  15 is out of the ordinary for maximum amortization.

Hi @Eric Schwake I think a performing note in your SDIRA would be a good option since the interest income is considered ordinary income not taxed assuming a Roth or deferred if not a Roth.

The black mark on the fence would normally be chalked up to ordinary wear-and-tear unless it were egregious.

Yes, if you sell after owning it for a year and your intent was to hold you will get capital gains treatment rather than ordinary income. 

Am I understanding correctly that we’ll owe ordinary income tax, but since we’re living in the property, we -won’t- owe self-employment taxes?

You are correct, income from note P&I and any other borrower payments are considered ordinary income.

Interest income is ordinary income taxed at the highest rate.

Real estate get preferential tax treatment (vs. ordinary income). 

@Justin Y.A solo401k will not work in relation to a buy and hold rental business.You need "ordinary income" for you to qualify to put away in a solo401k.rental income does not qualify.