Multi-Units frequently have a single metered water service and the LL pays water.City Trash (plus sewer fees if any) are also paid by the LL.Other expenses include:PMI (if you're paying this, you didn't put enough downpayment)Taxes & Insurance (if you pay PMI, then the lender WILL wrap these into your mortgage payments)mileagepest controlprofessional fees (CPA + City Business License)Legal Fees (Evictions & Collections)yard maint.telephone serviceutilitiesmortgage interestHOA fees (if any)repairsInternet Access ( a] if you provide access to the local carrier & b] lease prohibits personal accounts)

They do not have retirement benefits other than SS and Medicare and the way it stands right now, we will inherit debt in a house that needs a complete rehab. 

Before you do that I would find out what legal leg you can stand on, be it your lease or some local law you can point out.

Are you going to form a legal partnership or LLC?

DanielProcedurally & Legally easy to get someone out in Texas!

So I get that the LLC won't provide legal protection, but I'm wondering if my thought process is sound with respect  to the retirement account.

This response neither constitutes legal or tax advice nor establishes an attorney-client relationship.

When an IRA uses debt-financing, then Unrelated Debt Financed Income is taxed.  

Yes I used to own a debt collection firm and had access to TLO, Accurint and a few other programs. 

However, secured creditors such as a mortgage lender can seek the collateral to satisfy the debt.