If it is a rental property, you can sell and defer taxes using a 1031 exchange however the amount of taxes deferred will be greater because it will be sale price minus your adjusted cost basis (purchase price minus depreciation claimed on taxes).

When it comes down to scaling, will self managing or using a property manager allow you to scale more quickly?

Finally, I showed numbers doing the same, but using a lease-option.  

I can make that happen using a combination of excel and outlook, but i want to streamline that process. 

So before you decide anything, make sure you run the real numbers (versus using a guideline) and confirm what you expect to see for returns.Secondly...my only caution is if the property barely cash-flowing (not saying that's what will happen, but if it really is a barely)...there is an additional risk in CA in owning rental properties which is the extreme tenant-friendly laws here.

Purchase Price: $60KRepair Budget: $28KAfter Repair Appraised Value (Professionally Appraised): $167KWe are using a hard money lender for 100% purchase and 100% construction funding.

If your end buyer is not a cash buyer and is using a mortgage that is an entirely different deal. 

I really think the prior buyers were attempting to use an FHA type product or they were using a large national bank.

I am looking at using a self directed IRA to invest in my real estate business. 

I'm also not sure why you are using a commercial loan for a 3 unit.But you should call a big bank, a local credit union, and a mortgage broker.