Request the "official" version, from their accountant, which is filed with their tax return.Other than that, a good property inspector should point you in the right direction as far as what areas could give you problems and what capital improvements you should make to avoid things breaking up later.

Hopefully Indy can use some of the problems Baltimore has gone through with the program to make improvements to the system. 

Those are what will point the right direction for you.The way you protect yourself from a market downturn is to vet the market to make sure it is resistant (i.e. not single industry as Detroit was), vet the neighborhood (improving?

How much improvement are you planning to do to the lots?  

Over this, into 5 units and up, is where you head into commercial lending.Our family has occupied fixer houses and improved them while living in them, and then rented or sold the houses after a few years.  

We've even seen a .25-.375 improvement in MBS prices since close on Wednesday.But, I'd like to draw attention to the Fed's own projections for the median funds rate over the next 3 years. 

So, the tenants’ credit scores should be improving as they rent.

The act of joint venturing the two IRA's into the LLC initially is OK, but then that LLC becomes a disqualified party to each of the underlying IRA's.  

The work doesn't have to be showroom perfect and I'm always amazed at the equity that can be created by making necessary improvements without paying retail.

They could learn that FHA will finance up to 4 units, get all their income documentation in place, get their credit score improved to the proper level, get the seller to do the required repairs, get funds properly gifted for their down payment, contest a bad appraisal and get it revised, and think their good to go......then they find out that while FHA finances up to 4 units, they have to be owner occupied, and the buyer can't do that so the deal is dead and all the work was for nothing.