Large deposits will be reported to the IRS, and even breaking it up into several smaller amounts could still trigger the reporting.  

I did pull the trigger and purchase my first house which I'm in the process of fixing up right now.  

This makes it a single lot which would meet the frontage and setback requirements, but would allow him to also build up to the full 20 units/ac.That triggers the next question what is the valuation difference between his fee simple townhouses/duplex and a "condo"?

Be prepared for it is the conventional wisdom and I think that is extremely good advice.

(Incidentally, dividing purchase price by gross rent - the inverse of what you were doing - is known as Gross Rent Multiplier or GRM and is very similar to looking at per-unit cost - an extremely rough way of comparing properties.)

Then, when you find a property, you can pull the trigger with confidence. 

The additional information (about the IRA trust) adds quite a bit more complication to your initial question - is the IRA still pointing to the trust - was it split - does the trustee make RMDs to you - is the IRA in your name or the trust - is the 5-year rule triggered - etc ? 

You are right @Bob Romano Cap ex is extremely important to consider.  

I am looking into purchasing my first investment and I would appreciate your input before I will pull the trigger. 

.) = 529 x3 months (March, April, May)$3456: Interest only HML payments ($92,160 @ 15% / 12 = 1152) X 3 months$ 1137 Dumpster fees x 1 month (10 yard dumpster @ $379 flat rate per 10 days)$ 3500 staging fees x2 months$20000 Rehab (extremely conservative estimate, actual cost pending)$5000 Possible Repairs (extremely conservative estimate, actual cost pending inspector report)$300 City Water, trash, sewer (@100/mo)$900 Electric ($300/mo)$84 HOA (@$28/mo)$300 Lawn mowing ($100/mo)Selling Closing Costs and expenses = $19,380$ 7140 (3.5% of ARV)$ 12,240 (6% agent fee)Total Profit = 204,000 – 169,217 = $34,783 (before taxes)