Hello Everyone, After listening to Brandon Turner's podcast on BRRR the other day I'm wondering what the ideal market is for this strategy? 

At this stage in your planning you are within sight of safe harbor and a few more strokes will safely see you home.

There is always more risk buying a distressed property, and you should take that into account on your offer.I would recommend taking precautions, ideally having someone sleep there at the property during the renovation if people breaking into the property is a concern and it is safe to do so.  

Ideally I'd like to find a turnkey multi family around $100k in a good neighborhood and already rented with good tenants.

The ideal result would be that the SD IRA account gets its money back and any equity in the property is NOT held by the SD IRA.  

Ideally you would like to see a cap rate that is compressing or going lower as that would be an indicator values and rents in the area are rising.

And I'm sure there are a million other approaches that I'm overlooking.A few of our particulars:- While she is selling her house we will live together in my house (which I own free and clear), but it is a small house in the country, and between the two of use we have a lot of kids, so ideally she/we will buy another house or multi in town.

I deal with a lot of investors making drawings and obtaining permits for them in chicago.

What is ideal?

My ideal situation would be to do as @Glenn McCrorey stated and try to get that loan down to 5% which would get the payments down to around $475 which would fee up $175 a month at no cost other than closing, which sounds like a solid investment to me!