City recently did a building inspection and we noticed the tenant is smoking in the unit (cigarettes and marijuana), food waste everywhere leading to building pest issues, and there are 5 people living there now (3 adults and 2 kids).

Many people choose NOT to have this, because the administrator will then vet every investment you make to ensure you do not invalidate your IRA.Invalidating your IRA means that you've done a prohibited transaction and the entire account is then deemed as distributed to you.If you don't want checkbook control, then I recommend a plan administrator such as Equity Trust - www.trustetc.comIf you are sure that you're aware of all the rules around prohibited transactions and disqualified people (who you can and can't do business with), then a plan administrator like Sense Financial would be a good place to start talking.  

Multifamily is considered residential since people reside in the structure. it's part of contractors license law, our testing is on it and violating can and will result in punitive actions.

Wondering what people's thoughts are.

I hope people get the point that you worked hard to earn the $2 mil and invested it wisely, you didn’t just get rich overnight from real estate.

Many many many people.

The way I see it as a wholesaler is that my buyers are people who I am striving to buy one day so I pay close attention when they tell me something.

My mission is to have people use creative financing  safely, ethically, and legally.

.#2  MINDSET:  Just like some people will NEVER become real estate investors regardless of time, money, related profession, - MOST people will never become real estate investors.   

I've seen plumbers and builders stop hiring because all the "young" people start the job and then don't put in any effort or stop showing up.Figure out what you want to make hourly, then start telling everyone and their brother that you need work, how many hours you are available, etc.