I think real estate is pretty safe if done right. 

We're keeping LTV low, taking more term on our debt than we anticipate needing, and have a plan that focuses on bringing the old leases more in line with the current average rates.We also run Downside scenarios to see what the numbers look like if we're wrong about room to increase or (worse) the market changes and results in vacancy going up and rates going down.Those are not pretty of course, but a large part of winning is being able to stay in the game.

Seems to fit that description pretty well. 

Pretty much everything in the house is broken from A to Z.

I have not done a lot of research on laws governing self-directed IRA business transactions, but with self-directed 401ks, the IRS seemed to be pretty good at covering all their bases to make sure that if I am getting that tax benefit, I remain essentially housebroke until kids who are my age are calling me grandpa.

@Gabriel EhrlichThey are interested in everything ... rentals, flips, new construction, multi-families.That is a pretty wide range of choices.

Another question, which I'm pretty sure I already know the answer to, will a bank even lend to me for a property like this?

Fannie Mae guidelines are pretty strict.

@Ryan Blake I'm pretty sure they do but also they provide a RMLO services.

I forget off top of my head for VA but pretty sure it's for your primary residence.