A property owner who wants to be a pure investor and not run a real estate business might allow arbitrage in their property.  

@Monty GeorgeI cannot specifically recommend a firm, since I work for a provider of self directed IRA & 401k plans.I'm sure you will get some feedback from BP users that may help guide your search related to specific firms.The point of my post it to recommend that before you consider which vendor to switch to, you evaluate which business model will be most effective for your investment portfolio.IRA custodians (trust companies) are purely processors capable of transacting for the benefit of a client's IRA into non-traditional assets.  

These are more of a operating company play than a pure real estate play. 

What you are talking about is pure and simple fraud and would be disallowed.

Any "system" claiming to accomplish that is just pure delusion.

And doesn't your last point sound good...another city worker to deal with and another layer of paperwork...joy!

They're probably not a joy even when they aren't, because you still have to keep water tanks full, get waste tanks pumped, there's specialized equipment throughout that's more expensive to fix when it breaks... but the potential returns look enormous, if you're willing to put in some extra work.I've said I'd never own a boat (my family owned several, hence my caution) but this scenario is tempting me!

It doesn't sound like a pure FO, rather a blind fund. 

@Jay Hinrichs  you are totally on point on that one "AGAIN" , yes 3/2 is an ideal situation surely but if the neighborhood has 3/1s, it could be reasonable.I think I have bigger issues....I still dont have CapEx in my proforma above, which im now including @ 5% and my deal gets more worse plus Joy highlights the "fact" that one is hard pressed to find many $950 3/1s in the area.Painful yet eye opening lessons here! 

I still get the other 3 out of the 4 advantages (cash flow - very minimal with financing option, appreciation - which is pure speculation, mortgage pay down - the only life saver, depreciation/tax advantages - diminishes for high incomes).