We have to take a decision about how to use the capital at our disposal as well as how to make the best use of our borrowing capacity.We want to invest in multi family as we realized that condos and SFR will not get us where we want to be within timeframe. 2 options:1) use our capital to make down payments on as many multi family as possible through conventional loans (which means a max of 4 mortgages x 4 units each = 16 doors) Or2) use our capital to make a down payment on a commercial property of 12 -20 doors and not use our personal borrowing capacity Objective wouldn’t be to stop there but to continue to acquire some buy and hold multi family properties after these initial acquisitions.

Hi Kevin,Discuss it with (your) tax specialist, because the IRS has guidelines as to who is Independent Contractor and who is an Employee.

But it can be easy to get shiny object syndrome when you're first getting into it (like I did, haha).

If it is a good investment and there is an significant upside worth purchasing, removing the past due tenants and making simple improvements to raise rents would be another one of my objectives.

The objective is not to do this over and over again in my SD IRA, but really to do it just once or twice, and prove that I can do it. 

My objective is to buy and hold (multi-units), create passive income and eventually invest full-time.

What is the objection?

Perhaps the biggest pitfall I would say to avoid is the "Shiny Object Syndrome".There's so much to cover and I'm sure others will jump in and cover what I may have missed...

I think we will shift to using a specialist commercial attorney in future who would have seen this issue from a mile away.

(I am now going to tread lightly and objectively on a touchy subject and will avoid using names)One of the things I see here in Utah is big meetup groups and high-cost (up to $20k) real estate "communities."