Because one of the best things about investing in real estate is the tax benefits. when you invest with your SDIRA, you do not get to take advantage of those benefits. but with notes, where income is interest income and typically taxed at ordinary income rates - that is huge if you can defer or not pay taxes on that income.

I am looking forward to connecting and learning from those who are more experienced in doing passive income. 

Also, I won't profit right now from rental income - only my IRA will profit (yes I know it's me later in life), but I want more capital now so I can pay down my private student loan faster and repeat the process with other properties.The place is 1 mile from the beach, 2 minutes to the bus stop, 1 mile to the train, and less than 1/2 mile to a new mixed use development that will open this spring (just the 1st phase) and it's a 20 - 30 yr mixed use project. 

Looking at around 500K for purchase and rehab but the income potential is amazing!

Depending how much you earn you can step up those savings by getting a side-hustle.

If you earn $100,000 from the sale, you would get $80,000 and she would get $20,000.Add up everything you've put in and everything she has put in to determine the percentage of ownership, then convince her to sell and split the proceeds accordingly.

I would suggest that you rent the property and consider using a property manager who can finance the improvements for you up front and be repaid out of the rent so you can have passive rental income over the long run. 

Are there any banks who don't care much about the chapter 13 if we can show the equity, our incomes, our cash, our credit scores are good, and our payment history are all good? 

"Hire" that LLC to manage the property Run all expenses and income through that LLC.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.