This is a more complicated strategy that involves the use of a non-recourse loan for the IRA, as you may not pledge a personal guarantee. 

What are the other cost involved beside the development cost.Any help would be appreciatedThanks

I wonder though if anyone has any advice on how to get into rental properties and make it fair for all parties involved. 

Excited to get involved, learn more, and do my best to help those in the community.

At this point, the goal is to deal with the person, who is handling the transaction and try to get out whole. glad to see my guess of 5k was about right.. that's what I have personally seen on the short sales I have been involved with.. never really seen more than that.. just hoping she only paid pennies on the dollar and is not in that deal like 15 to 25k.. if that's the case I think she is going to lose some dough.

That being said, I’ll bet you can still do it.

There's risk and cost involved if they have to foreclose. 

If your time is worth more doing something else, then hire it out.If you have someone you can trust to do a good job.....just as good or better than you....hire it outIf you like to be involved and be hands on, then do it ....up to a point.I prefer to do everything I'm capable of myself....if I have the open time.

I have come across this deal in York, PA, involving 3 side by side single family homes.

Learn from someone else's mistakes, don't reinvent the wheel, etc.My goal for my first deal is to financially partner on a flip with someone who has some successful rehabs under their belt so I can be involved in a deal, see firsthand all of the stages of the process, and learn the basics from someone with some proven experience.