I realize this doesn't meet the 2% rule but comps show that an updated house will go for about $450k.  

You're going to realize most rooms don't need anything other than paint and a light fixture.

Taking cash out in a loan that has to be paid back, is not a "gain" until it is realized. 

I also am realizing how valuable it is to live in the property you will be renting, because there are a lot of little things that need attention and hide easily, so they may go overlooked.

I realize that $$ always helps, and it may just come down to that.

To me, a worst case scenario is if I realize in three years that my analysis was incorrect and I will not get positive cash flow. 

Originally I wanted to be the 'guy' buying the house, but realized my strong suite is tailored to the construction side.

You won't find property managers who have been doing this for a long time for a lot of people without realizing that maintenance is its own things and has to be charged for outside the management fee.

That being said, I realize anyone can get scammed, if not careful.#2) Fees - While fees are typically not huge, they do add up over time, and even a 1% fee over the life of an IRA can drastically chew up potential returns.#3) Having faith in your custodial service. 

(I realize there are hot markets NOT in the southeast, ie Boise, SLC, etc...