Any illegal activity like drug dealing, prostitution or gambling can attract unwanted elements.

It's like gambling your paid off house away on a penny stock and losing it all.

I am an investor myself, so I have immersed myself into learning and knowing the terminology, how to run rents, comps and ARVs (it is different from a regular homeowner). 

REI isn't gambling if done correctly. 

It could appreciate but I consider that gambling.

The bad news is that finding something STR eligible is not automatic and in many cases you'd have to apply for a permit after you bought, adding a layer of risk, however, you can call ahead of time and understand if permits are available and the property qualifies, so it's not a big gamble.   

If you do equity only your basically gambling to some degree.Buying negative cash flow assets is better then not buying anything at all however.

There's also the issue of risk - someone with only 30% at stake, may gamble a LOT more than you would gamble with your 70%.Also, strategize and think through worse-case scenarios for fraud.

Would you gamble?

I hope my post about not investing via your IRA didn't come off as accusatory - you shouldn't have been lead down that path to begin with, and no worthy businessperson would have talked you into gambling your retirement like that.