However, I have seen first hand what can happen when a tenant digs in and fights all the way up to the point of the sheriff removing them from the property.

@Michael Smith - The best option is just to use actual funds on hand.

I am not afraid to lick some envelopes or hang signs or get my hands dirty in order to learn from someone! 

I have about 20% cash in hand on a residential commercial property at 975k with 10 units, which is occupied in Northern NJ.  

We have also had a handful of clients over the years make bad investment choices in real estate - either through lack of experience, picking the wrong partners/providers, etc.The bottom line with a self-directed IRA is that you are your own "fund manager" so to speak. 

This leaves you with more cash in hand at the end of the year and IMO making you a better "less risky" candidate for a loan.

A substantially lower entry point compared to buying a property and you'll get hands on experience in evaluating properties. 

Getting rid of most or all of that debt may accelerate your credit repair.But still, keep a little cash on hand, so you can handle an unexpected expense.

I also bought a fixer upper to try my hand at flipping (definitely not for me) and it became my second rental. 

Other unexpected repairs could add to that.On the other hand, everything may be smooth sailing and you’ll have 17k of reserves in a year and growing.I would suggest you do some contingency planning.