We already paid them a pretty sizeable entry fee ($30k) to cover some of their equity and debt in another project.

and, something that doesn't get discussed enough - a record number of properties don't have any debts on them. 

I’m not entirely sure I’ll ever be able to get her on a mortgage because she’s just so adverse to having debt.

That's before you pay any debt service.To answer your question: No, it's generally not a good idea to lose a bunch of money every month.

The income doesn't really cover expenses plus debt service. 

I doubt many are going into credit card debt or if they are that's kind of crazy.. as this part of real estate has no smoke and mirrors generally.And I suspect because most of these folks are doing some sort of PPM and need to deal with accredited investors.. that separates those wanting to start to those who have already had some financial win's or experience and just looking for a new avenue.. 

Im self employed, roughly make $130k gross anually, 1099 NEC , no debt at all, 740 credit score. 

You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

if his income is strong enough and not as much debt, he should be OKHope that helps..

The challenge we're facing is the lack of short term rental data for the appraiser, and we won't know if it will meet the debt service coverage ratio (DSCR) requirements until the appraisal is complete.Has anyone dealt with a similar situation?