In many areas the federal government took out the mineral rights before giving the patents on the land, it depends under which act the land was sold. 

But until they get the flood insurance rates and program under control, it's too iffy as flood insurance costs rising could eliminate cash flow quickly.  

Nicole, I used a program called redx and started doing this for a little while.

The real estate is effectively inventory in a sales business, just like refrigerators or stereos.Passive sources of income such as interest (i.e. hard money lending), rents from real property, dividends and royalties are not subject to UBIT.This concept is documented in IRS publication 598.The ROBS program is an entirely different structure as compared to a self directed IRA.  

In reality, your holding costs will likely be zero, @Qendrim Marku, since it's doubtful you'll find a hard money lender to fund this deal under the scenario you presented.Because of the overly strict regulations that govern home loans, such as Dodd-Frank and the SAFE Act, most hard money lenders will not loan on owner occupied properties.

If you don't have a written lease from the purchase I'd check out your local and state agencies for advice on what the law is in the state in addition to consulting with an attorney.For example, where I am (St Louis, MO) the city has a "landlord's guide"https://www.stlouis-mo.gov/government/departments/...which includes things like sample applications, information on the eviction process, and citations to the state landlord tenant law.The Attorney General puts out a state guide on Landlord Tenant lawhttps://www.ago.mo.gov/docs/default-source/publica... though an attorney would be the most helpful when it comes to knowing what paper trail you need to create.  

Good luck with your investing program. 

As @Donny Widjaja mentioned, the determination of employee status should not be governed by the purchaser of the materials.  

Start with KW for their training and programs.

The main meeting is either more advanced material or sometimes a Guru selling a kit or book or program.