Here are some additional comments to add - please be sure to read the last comment regarding making contributions to both an IRA and 401k.Can I set up a SDIRA if I have full-time job?

Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.

But there are many things that can be done to greatly reduce the chance.For example, many sponsors are audited which provides an additional set of eyes.

If you currently rent for $2,500 and take the $1,750; you have additional positive cash flow of $750 for your rent situation.Have you thoroughly looked over the capex potential issues? 

In addition, Pace Morby's team could have systems in place to vet the deals for which loans are sought.

In addition, due to them being eligible for conventional non-commercial financing they typically have lower cap rate than 5 units and more.  

Long term goal is Property  Appreciation.Brand new single family home with 3000sqft (+ additional 1200sqft unfinished basement) on a 0.25 acre lot.

Quote from @Zach Howard: Quote from @V.G Jason: Quote from @Zach Howard: @V.G JasonTo someone just starting out (only option of OOS) who can get access to 200k, but no additional financing at this time but an additional 50-100k max in reserve cash, where might you recommend they start - markets/property type/strategy?

Additionally, regarding the legal structure, an LLC seems to be the most suitable option for our situation.

Additionally, add in the ambiguity/risk of the due on sale clause or ramifications on the conventional loan of transferring the property from your individual name to an LLC - the economics don't make sense, and the headache isn't worth it even if it did, in my opinion!