Hey Ray, I would exercise caution here. 

There are a few beliefs here I would like to invite you to challenge, in the very least it's a good thought exercise. 

I am very impressed with your knowledge and will definitely going with your firm for the simpler 401k trust plan, and I will get rid of the LLC.Just for the sake of exercise, could anyone please still let me know if an IRA makes a private equity investment into an LLC and becomes the 100% owner of the LLC, and the LLC later receives tax forms against its EIN, will the owner of the IRA just disregard those tax forms?

The "extra" rent that you pay above the fair market rent can be applied towards the purchase price of the home IF you decide to exercise your option to buy as well.  

people are people no matter their wealth my two partners in the 2000's could not be more dissimilar  one owned every thing out right and drove a gently used SUV type vehicle. 

OP my wife and I went thru this exercise about 4 years ago.

., incentivize by saying the purchase price will be $285,000 if they exercise their option on or before 2 years, or negative reinforcement by having set rental increases if they do not exercise the option by x date?

It gives me a good picture of the cash-flow in the most recent fiscal period (typically a year), but to carry that forward 2, 3, 5 or 10 years encompasses as many assumptions and predictions as does calculating an internal rate of return.Now, you can discount future cash flows and endeavour to calculate a series of CoC values ... or, perhaps an average CoC over a period of time ... but you are now getting into an exercise which is not entirely different than determining/projecting a rate of return :-)  Naturally the cash return is a component of overall rate of return."

In the meantime I know how you can lose 50 pounds by eating more than you do now and not exercising....I’ll tell you for $1900 or you can look up tapeworms on Google.

Nothing gentle about it.