Per our legal counsel, we have always considered any of the prohibited transactions to be a two-way street; from the IRA to the disqualified party or from the disqualified party to the IRA.

@Jessie Griffin never use legal zoom for anything.

Also what are the legal and tax implications and procedures?

Are there any time restrictions for cash out refiance ?

Just not legally true or factual. 

There is no legal filing to start a partnership.

@Matt Kalish Seeing that you live in Miami I would suggest starting off with something within 30-45 mins driving distance if this is your first go at it.Miami/Fort Lauderdale command very high hates (more than I got with the keys) and you can rent for any amount of nights instead of being restricted to 7 or 30 days.

This is completely legal where we are but should be verified for your area.

Knowledge can he;p on negative thoughts.If you are thinking about purchasing use that place is in an area of high demand, has a growth in population and jobs, and will have easy access,  close-by amenities with walking distance, and has no restrictions by the City that have been approved that may reduce your planned income. 

It still sounds very attractive and amazing for me if I can invest a property with 10% or above NOI, but for sure subject to limited legal risk and potential crazy tenant.