I would like to find a route that will get me the property but to make sure at the same time the seller and family doesn’t get screwed over on their taxes through any misunderstandings.

Are you sure you didn't misunderstand?

The major misunderstanding and likely the key driving the utility of these instruments is notion of ease of eviction.  

There were some misunderstandings and tension between me and my family members but I had not expected what I saw that morning when I returned from my graveyard shift.

I had to re-read this several times to be sure I was not misunderstanding the issue.You had your last tenants stay there for six years.

That may be flawed logic if I’m misunderstanding the rental income piece, which I will try to clarify…Let’s say I was starting from scratch and wanted to buy a $500k house (numbers are just an example).  

I.E If you wanted to use the 13K to rehab a property, the IRA would need to own that property that you want to rehab first.On the second count, I think it may just be a misunderstanding.

If it's just a house you bought as an REO and fixed up (I may be misunderstanding you here), and you're flipping it, assuming the rehab was done well, that shouldn't be a problem.

It is not uncommon for tenants to misunderstand mold and mildew.

I'd have to list misunderstandings about money up there near the top of the list.Does it take money to do real estate?