@Wayne Connell I think it would be a prohibited transaction to use 15% down payment from your SDIRA and then owner finance the rest.

Some SDIRA custodians may have restrictions or specific processes for taking distributions.Prohibited Transactions: The IRS prohibits certain transactions within an IRA, and engaging in these transactions can result in penalties.

Ensure you understand and comply with all IRS rules regarding prohibited transactions.UBTI (Unrelated Business Taxable Income): If you use a mortgage or financing within your IRA to purchase real estate, you may be subject to UBTI tax if the property generates rental income.

The IRS prohibits certain transactions between the IRA and its owner (or certain related parties).

Find and use a good custodian, they'll set you up correctly and ensure that you're not involved in prohibited transaction2.

Needs a pretty decent rehab ($50K) to get back to market value.Intent vs. legality of arms length disclosureMy understanding is that the intent of the disclosure is to avoid mortgage fraud by allowing a related party to purchase the home at a deep discount then reselling or renting the property back to the original seller.The affidavit is not only a disclosure of information but prohibits the buyer to be of relation to the seller.The intent of my purchase will not include the seller being involved in the property going forward at all (fix n' flip or rental to an unrelated tenant)How does the affidavit apply to an LLC buyer?

It doesn't have so much to do with Kansas being a non-disclosure state as it does that Kansas has a "unique" privacy law in place that prohibits the use of information gained from public records to use for sales solicitations.

I think the risk of you having a prohibited transaction (extension of credit and not using a nonrecourse loan) is the real issue and not necessarily UBIT.  

This is not inexpensive to set up and definitely cost prohibitive for something like a $100k property.

However, this would be cost-prohibitive to do so and they know this.VA loans are government subsidized and the lender must follow VA guidelines in order for them to be insured on the loss.