Likewise with contractors, be your own power team, if not some GC will take you to the cleaners.

In our own home it's not a big deal because we are almost always around to welcome guests and clean during turnovers, leaving us with very little expenses, but having to hire cleaners and property management would definitely cut into our profits for that. 

This is a cleaner way to do it. 

No one wants to do their laundry at the dry cleaners at 10pm at night.

I financed both rentals through hte same lender, but it kept both transactions cleaner for my business today and in the future.Who do you use for your commercial lending as I am in Green Bay as well?  

Someone that knows cleaners for in between visits, contractors for any necessary repairs that may come up (even repairs necessary to get the property up to standard before renting it out), etc etc.

I said sure and told them where I had hidden the key for the carpet cleaner who was coming that day (mistake!).

Furthermore, depending on the relationship of his family member that may lend on the project, he could possibly enter into a prohibited transaction.To me, a cleaner way of doing the transaction would be for you to pay cash for the property, use it for collateral, and have the IRA loan the money for the rehab in a 1st lien position.

I just virtually manage them and cleaners.

Otherwise, you'd be taken to the cleaner.