Your kid might have to file a return if he is not right now 2) Your rental loss might be lost as your son will have no basis or at risk amount in the partnership to deduct the rental loss.

So, figure out ahead of time how they can pay their rent, as you don't want them to give you a lot of cash, as that could be dangerous to you, if some bad people detect a pattern of you carrying a lot of cash. 

If that cave-man "effs" up something, and disappears into the woods, you still have the contractor's bond to cover the liability.At the end of the day, you have to assess the risks.

I agree with @Jerry W. in that the greatest risk lies with you.

The currently scheduled lease rates for these unit averages $814/month.Comparing existing leases rates to our “Base Case Scenario” you can see how much the new lease rates are exceeding our baseline projections AND the average currently scheduled rents: 2/1 New Lease +$78/month                Our Base Case is +$53/month2/2.5 New Lease +111/month             Our Base Case is +$71/monthI don't want to post the actual rent roll on here, but I can tell you that just from the wide spread in lease rates among unit of the same type that this property is carrying a big loss-to-lease.So what do you think? 

If Wildwood would have gone as planned I would have Penn Valley as my location not Oregon and Vegas  :)  Anyway carry on..

I hear a lot of people talking about advantages of self-directed IRAs and understand the tax advantages are huge--not to mention essentially having a higher return without taking a higher risk.

They dont have the wide swings like the mainland, so does that help in that the risk is lower? 

I tend to have a VERY low risk threshold when it comes to handling other people's money...

Therefore fewer days on market, less carry costs, etc.