I am considering two options for purchasing a A+++ SFR cash, Option 1 to place in a self directed IRA and let the IRA own the property and Option 2 is to buy in cash upfront and pay the taxes owed.I am 62 years old and have another five to seven years prior to retirement and so I am trying to set up my portfolio for income generation by that time.

Can you please point me in the right direction? 

Both are older homes, the 3/3 was renovated in the 80s.2/1 home is prime candidate for a tandem house out back or teardown and convert to Rowhome zoning, (properties were recently rezoned just across the alley tandem homes, ADU already zoned ok) 3/3 is newer, on a double lot, but my thinking is that I could hold these for a while, go through the rezoning process and sell both if/when the neighborhood continues to get hot enough for more density building, possibly work with a contractor friend of mine to get going in this direction, or try to do construction of tandem home behind 2/2 and then adu behind 3/3 home.Are there any resources for spreadsheets or analysis specifically in this realm/that I could show my financiers to calculate the projections on this?

I stuck with my small business for a few years, which allowed me to re invest my profits for my real estate into more deals.If you can't, then it may be worth it to take a leave, but before you do, set yourself up to succeed.

It was an investor who'd bought a sfh with some land, rented the house, and then partitioned the land as a small RV storage.

While it is completely possible to be successful as a part-time agent, there are some important points to consider before deciding whether it will work for you.Finding a broker can be more difficultKeep in mind that brokers fail or succeed as a direct result of the efforts of the agents who work for them.

"couldn't confront the tenant directly because he manages it remotely from Oregon"....... what a horrible cop outThe city could document the HUNDRED of night the unit was booked as a STR....and the LL made ZERO effort after the first issue to monitor to see if hit the STR market again?

The rates for a purchase money loan (one where you take the loan out to directly acquire the property) vs when you do a "cash out refinance", which your loan would be if you chose to pay off the line with a loan on the primary residence, it typically done at a higher rate.

I would possibly start a small business in college and start building up some capital while focusing on graduating debt-free.

You can roll it to a self-directed IRA (SDIRA) and buy real estate or privately lend, but you couldn't do that with your personal rental otherwise you would blow your IRA up. 6.5% right now is a great rate...it's lower than what you can get a 30-year fixed owner-occupied home for.