Also, with a SDIRA there are three different types of transactions that could fall under the prohibited transaction rules: Direct, Conflict of Interest, and Self-Dealing.

The reserve requirement has become prohibitive of buying more properties. 

I learned quickly that financing the property in the LLC was going to be cost prohibitive, and that’s why I’m financing it in my name and not in the LLC.I’d prefer to have the property in the name of the LLC for obvious asset protection reasons but I’m concerned that the lender could call the loan for immediate repayment if I deed the property to the LLC after the legal closing (there is a clause in the agreement).

Prohibited transactions can still occur including involving disqualified persons, signing personally for loans, mixing Ira and personal money, etc so be very careful and understand the subtleties involved.

Exemptions, limitations and prohibitions.

Following are some of the similarities and differences between a self-directed IRA and the self-directed solo 401(k) plan:The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m)The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2017, the solo 401k contribution limit is $54,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

But - now that I understand that there is a restraining order (which applies to both parties) - either do that through a trusted emissary (unless the RO prohibits even that) or continue in writing (like by email - my preferred way, because there is record who said what/when.)

In Denver, an Airbnb house was shut down by the City because of an existing law prohibiting leases of less than thirty days.

There's too many variables to make a blanket rule like this.For example: What does the state law say about it where the property is located (in the original poster's state there is a law expressly prohibiting this); what specifically is broken/damaged; do you know (better yet - can you prove) who did the damage; was it due to the tenant's negligence; was it done by an unknown third party. etc.

Go ahead and form the REIT, the costs aren't prohibitive.