When you have the loan, convert it back to a 5 unit, and insure it as such.Things to look out for: Watch your loan documents to make sure there is nothing that prohibited about increasing the number of units.

The Lease prohibits smoking in the property.

You want to have a professional do the documents and be available to make sure you don’t make mistakes and commit prohibited transactions.

Account ClosedBest to start a new thread for something like this.IRS rules simply prohibit an IRA or 401(k) account holder from placing a personal guarantee on a debt instrument. 

@Paul De Luca looking at the town code for the district I am in and it says “prohibit short term-leasing, business, commercial, and industrial uses.”

But first question I have is, is there anything that prohibits the building of these properties in Central Florida?

Such loans without a personal guarantee (which IRS rules prohibit you providing on behalf of the retirement plan) are going to be a bit more conservative in terms of LTV, how quickly they will look at ARV on a property instead of just cost into the deal, etc.  

Slocomb Reed Many already mentioned but private investors want rates that are double digits and many states have usury laws that prohibit rates above a certain limit.

Keep in mind that a binding arrangement may be prohibited. 

@Trever GoodThe scenario you are suggesting is prohibited.