Unless you have a Roth, you can easily pay much more in taxes by investing in real estate through an SDIRA.I would just add that UBIT tax only applies to leveraged real estate in an SDIRA - and it can apply to either a Traditional or Roth IRA.

I've heard that renting by the room can be a great way to boost profits, since you'll end up collecting more in total rent than with a traditional lease.

Traditionally I rented my apts. usually to families or roommates. 

However, transferring your current home into an LLC may affect financing, as most traditional lenders require it to remain in your personal name for a home equity loan.

@Kerry Baird These are renovation loans traditional lenders sponsor to help homebuyers.

.- Short-Term Rentals in Non-Traditional Markets: Secondary markets like Florence, Alabama, are ideal for short-term rentals.

In that case, would it be a traditional 15-20% down payment be my only way to go? 

Of course, I do a lot of traditional real estate sales and enjoy every aspect of the biz!

I think you should start by understanding what it is your investors want out of the deal, analyze how the returns compare to traditional investments, and then see where you fit into this deal. 

I have a retirement 457 account with $120k (split amongst Roth and Traditional).