Plus with the condo association taking care of most anything that goes wrong your management fee and time dealing with issues at the rental property are very much diminished.

The key is you're getting into a property for no money down except VA funding fee unless seller is paying it.

At the end of the day banks and agents are the individuals are making the big bucks on commissions and fees in a bull housing market.

If you (or either of them) were knowledgeable enough to navigate the entire transaction, you could tie both ends without an agent, saving at least 6%, which would have been plenty of spread for you to make a nice fee.  

the "unregistered unit" comment bothers me - - the City could be baiting you and then hit you with fees and non-compliance issues. 

That makes your self-directed IRA investment passive (as it must be, under IRS regulations) but also lets your LLC handle the management expenses and receive a management fee to augment cash flows.  

Im in Amarillo as well so if you have any questions fee free to contact me anytime

What should I expect to pay for closing costs and other FHA-related fees?

Anyway, I really hope you can recover the fee + legal fees if necessary (if you can).Good luck!

DON'T pay the scammers up front fees.