Why not buy the 2nd property using a conventional loan as a non-owner occupied property and then when the year passes you refi into an owner-occupied loan.

I have found two very distressed properties that I would love to get under contract but the public records show that the occupants are the owners themselves.

You can invest with less risk by using all cash, you can also have less risk by investing in non real estate assets.

We moved the dangerous non code complaint electric mast and panel.

We moved the dangerous non code complaint electric mast and panel.

NOO probate either tax delinquent or preforclosure.I’d be at the public records office or courthouse or if it’s available online I’d be at Starbucks Then I’d go meet with them, I’d skip trace or send a white letter then show up on a Saturday between 12-4pm

That $10K would be all available, or the IRA could joint venture with another investor not considered a disqualified party to your IRA (you, spouse, lineal family).An IRA may borrow, but must use a non-recourse loan, meaning no personal guarantee from you or a disqualified party. 

Make the option money applicable to purchase price if they buy, but non-refundable if they don't. 

Owner of 2nd mortgage started foreclosure 2018 for non-payment and was pulled into Chapter 13 BK.

Read up on non-arm's length transactions as I'm not sure you could even get the loan approved, anyway, which may be a good out for you if you're looking for one.