Where there is some additional questions are whether items like health insurance for myself and my wife (the premiums not the actual medical expenses) would be considered part of this overhead (in the past we HAVE NOT put this into the "cost allocated" calculations for Sch E but instead listed them in Sch A.

I KNOW that market very well, having built all types of projects from SFR, MFR, subdivisions, office parks, medical/dental, retail/office condos, etc.

Unless you are just looking to buy a solid performing note and collect on cashflow, you may want to consider doing a JV with an experienced non performing note investor to educate yourself along the way. 

If using a lender this is a non issue.

Have you spoken with a lawyer on the process of creating the GK and how to wrap investment property with a Non-PR? 

Okay, I have put in the sacrifice of counseling addictions treatment for over a decade and honestly am not fond of subjecting to this slavery any longer. 

IRS does not allow any transaction between IRA and disqualified person, all transactions must be “arms length”.If you decide to use leverage in your IRA the loan must be non-recourse, you are not allowed to use conventional financing because it requires personal guarantee.

Once you have an address of a property that appears to be in distress, you can go to the county assessor to find the owner (even online in some counties) for free (if you don't value your time), or you can use a paid service that will give you all the details right on your phone while you are standing out front, owner or non-owner occupied, value, comps, equity, vacant, even their phone number.

If he refuses to sell without being allowed to stay on as manager, then it seems like a non-starter.

My son was just measuring for window treatments but the home appeared unlived in and the cats were out of control.