As a side note typically I do not use my deferred tax dollars to invest in traditional real estate as the benefits (depreciation etc) are all lost when using a self directed IRA - My guess is build to rent will provide little to no cash flow to build the account - it will all be locked in the property. 

Since you won't be able to recognize it as a valid rental if you're charging under market rent and you also expect to be covering any house expenses that are outside of her budget, this seems the best choice. 

For us in the seller financed note investing world, we are often looking to find value in a deal that fell outside of a traditional banker's lending box. 

Hey Andrew, for a 12-unit property, traditional lenders like Fannie and Freddie could be great options, especially if it's stabilized with a strong upside.

And 3 days a year I spend about 30 minutes pondering a repair, rent increase or turnover choice. 

I am trying to calculate my returns over a 10-year period using the rent-by-room strategy, which results in significantly more cash flow than traditional rentals.

Inconsistent Cash FlowUnlike traditional jobs, real estate doesn’t provide steady paychecks.

.- Short-Term Rentals in Non-Traditional Markets: Secondary markets like Florence, Alabama, are ideal for short-term rentals.

I'd rather purchase a vacant rental if I had my choice.

Six-unit apartments are an excellent investment choice, and I’d be happy to help you explore options that align with your goals.Looking forward to hearing from you!