This is an example of private lending which is different than the IRA owning real estate and does not trigger UDFI/UBIT tax.

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

Rents may be high, but where are taxes and insurance.

The key is that in order to completely defer all tax you must purchase at least as much as your net sale. 

House needs some Interior Cosmetic Work, Wood Fence Repairs and some Plumbing Work.I want to turn and run, but I recently heard where there is a Problem, there is Opportunity.I thought this might be an interesting Case Study.Thanks for the Ideas.If they owe $180k on a $210k property and its a year+ behind then they probably owe taxes and other bills as well.

Either way, with rent and price appreciation, tax benefits, holding long term is a net worth exploder.

I’d fix it up and list it to sell after I’d been there two years to take the gain tax free.

You must have the Business tax license & pay all the fees required.  

Not only were tax shelters stripped of their tax deferral capabilities, but they were stripped of it RETROACTIVE, allowing the IRS to recalculate tax shelter investors income going back 7 years.  

Not to mention the tax benefits it allows.