Then you can use the money as a down payment on a property; factor 20% for a SFR and 25% down for a multi family (duplex and more)I had $50k in a SDIRA, but found that the hassles of working with lenders in an account like that just wasn't worth it; I rolled it into my current 401k and took a loan against it.But with the amounts you're talking about, you might just be better off taking the hit now but freeing up the capital to work unencumbered with the limitations found in a SDIRA.Just a thought.

Is owner-financing preferable to FHA financing a small multi?  

Having grown up, and now work with a family that owned/owns several multi-family properties I trualy have a grasp of this market and what it has to offer.

If you cheat the system and try to not live there the first year I'm pretty sure there are penalties and fines. 

I have 7 multis, and rarely get noise complaints.

What about purchasing a multi-family property (2-4 units)?  

If you are not prepared to move to a multi plex property to begin your investing you are not ready to invest.

We're looking at single family homes and small multi-family homes, and right now I'm focusing my search on the South Wedge, 19th Ward, and the East Ave/Park Ave area.

It is a very different animal than investing in single family or multi-family homes.

If you are buying larger multis out of state in up and coming economies and locations instead that is understandable too.