Commercial is a totally different ball game than residential, so connecting with a commercial broker will definitely make your life easier.

@Sofia De Santos Tavarez if you haven't already, have the property professionally inspected.This should catch MOST of the structural, health & code issues - but not all.

There's always someone getting older, or something going on in their life, and wants to sell out.

Actually the IRS does not tell us what we can invest in, only what is disallowed (life insurance contracts and collectibles).Allowable investments for SDIRA investing include the following:Residential real estate, including: apartments, single family homes, and duplexesCommercial real estate Undeveloped or raw landREITs (Real Estate Investment Trusts)Real estate notes (mortgages and deeds of trusts)Promissory notes Private limited partnerships, limited liability companies, and C corporationsTax lien certificatesOil and gas investmentsPrivate stock offerings, private placementsJudgments/structured settlementsGold bullion Factoring investments

I'd say the logical paradigm in the question is a bit off.CRE includes everything from airports to golf courses to hospitals to campgrounds.So saying "residential versus commercial" is like saying "bacon versus plant life."

The government is trying to protect people who managed to run their life well enough to buy multi-million dollar homes?

I want to utilize my arbitrage to obviously use for my personal life but also to create a hefty fund for investment properties later on the line. 

With some of my clients, I've seen discounts of 30% to 90%.Here is a real-life example: I invested in a $50K note; it was second TD but with significant equity (over $200K) protecting my investment. 

@kenneth life saver.

Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.3.