You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

If so, you'll need to figure out why you're not making money - is it other operating inefficiencies or your debt terms?

Not aware of a lender that will allow a rookie to do this.Recommend either starting smaller and working your way up to this or partnering with someone you can learn from that can be your lead with lenders, etc.

When the lead came in, it was from a brother who inherited a house from his mom.

Additionally, your brother would inherit your cost basis for the gifted portion, potentially leading to higher capital gains taxes if he sells later.

From all of that data, it's abundantly clear to me that any rental that has debt doesn't really cash flow.

Usually draw fees are very minimal though and if you plan them right, it can be a great way to replenish your cash or pay down debt from rehab.

As the new owner, you’ll want the lease and your landlord insurance policy to take effect as soon as you take title to the property.Temporary Lease Considerations:While short-term leases can work well, leasing to a seller long-term often leads to complications.

Quote from @Milly Owens: You may be right James, then again you would have a hard time convincing Asser...since the program reimbursed him his initial investment of $1,000 and then paid him $10,000 for the lead!

I understand some of the economic factors that can lead one to a particular city or province (or state), but unsure of some of the key elements as you funnel down below that level.Appreciate any insight.Tyler