This will likely increase your operating costs to some degree over a non-project HUD building.

I have been invited by a fellow that is a member of Biggerpockets to be involved in buying and selling single family homes and I might go into that because of my brother who has plenty of experience and is knowledgeable in that field and he has offered to help me.The reason I chose apartments is that I have been convinced of it ultimately because of all I have learned that it is the best way to go long term and ultimately you can hire a Property Management Company that will take care of the daily operations and that managing a property management company will not very time consuming. 

And do the smaller listing agents also operate this way?

. $9,450. 30-year fixed, Interest Rate: 5% Rental Income: $3,900 We will be living in one of the units, but for the sake of the analysis I am going to calculate both units as rental income and factor in my costs at the end.2 Unit: $1,600 + 3 Unit: $2,300 = $3,900/moTotal Expenses: $2,832 Operating Expenses: $1,434/moMortgage Expenses: $1,398/moResults Monthly Cash Flow: $1,067/moMy Unit’s Rent: - $1,600/moOur Cost of Living: -$533 / 2 house hackers = $266/mo.Biggerpockets Property Rental AnalysisIn conclusion, if this house hacking plan is accurate and realistic, I would cut my monthly living costs from $850/mo to $233 (excluding utilities), and would have purchased my first rental property.

and what is the order of operations? 

We were in the same spot as you a couple of years back and we decided to hire a team of virtual assistants to help us manage and operate our business with systems and automation.

In either of these formats, the plan provider is performing legal structuring to put you directly in control of the funds and operating out of a bank account of your choosing under the umbrella of the plan. 

@Brandon TurnerI’m a union crane operator in Olympia.

That particular interpretation does seem to be a bit more conservative than the average among the self-directed industry, however.I agree, 4975(d)(2) does not cover managing a rental, but that exemption seems to apply to the plan or IRA actually contracting with and possibly compensating a disqualified person for services necessary for plan operation.

Once they're all leased up and the property is operating at a profit, I'd go to a bank and say, "Look, it's a viable concept, we completed phase 1 without screwing anything up, units are all leased and generating profits, and we have a waiting list for phase 2 and 3 units.