Most of the recent posters are missing this point.The issue is what capacity you're an investor in the syndications, and the interplay thereof with IRC Sec. 469, as an interest as a limited partner, or the functional equivalent of an LP, generally raises the bar under 469 to take the syndication losses as non-passive.You claim you're "a passive investor (not Gp, Lp or KP)", but this statement further muddies the water, not clarifies. 

so... what if you :-ignored the headlines-were an individual in a strong financial position-bought an STR in a place you believed in and liked to visit, and-were willing to put in some time, effort and funds over 1 or 3 or 5 years?

Zach, to Taz's point; I think there is legitimacy to what he raised, long that's been my 1 critical point on R2R, that the nature of the operations seems to be rather.... opaque.

I am sure @Joshua Dorkin and @Brandon Turner will agree.BTW, if you need funding or any help on your subsequent deals let me know.

An appraisal can be done "subject to" and you can even hold out funds at closing made directly payable to ABC Roofing, etc. so that you don't have to dig into your pocket again.

My company doesn't care to get into residential agency, which is why I'd rather not mix the funds.

Mind you we could only do like 3k down so we'd need a loan to fund the repairs as well, but we have great credit and only own one home as of now.

@Arthur LeaoThe Roth IRA likely does not factor into your strategy as you have described it.The Roth IRA is not sufficient to purchase a property outright or with a non-recourse loan.The Roth IRA cannot be combined with personal funds to create a deal, since it is not sufficient to do a deal on it's own.It sounds as if you want access to the income.While an IRA may invest in real property, doing so is a way to diversify the IRA savings, not a way to bring that IRA money into your real estate deals.

If you don't have much money, I would either look for private lenders to help you fund deals or look into wholesaling.

Rates are generally 4.75%-6.25% depending on the terms of the note.The use of non-IRA funds to leverage the IRA triggers a tax known as UDFI (see IRS publication 598).