Look into your state and federal laws that govern this to figure out how you would work this into your specific deal. 

This town was a town that I enjoyed visiting as a kid, but due to the economy and horrible decision making by the local government, the entire place is in shambles.

Another thing not being talked about here is the heavy reserves that are fixing to be placed on big banks.The " Too Big Too Fail" caused the government to do bailouts.

One of my recent transactions (a condo in Federal Way) was $45,000.  

Those legislators opposing SB 15-177 under the guise they want to "protect HOA home owners" have continually refused to support or sponsor Bills that would save home owners money, make current ineffective HOA laws effective, and improve HOA governance.

And what percent should I store away for the federal capital gains tax??

The risk is being investigated by the Federal Bureau of Investigation and ispunishable by up to 30 years in federal prison or $1,000,000 fine, or both.Just don't do it.

It's a problem that is going to be addressed one of three ways: 1) by market operation, 2) by government legislation, or 3) violent uprising.

Do you potentially run afoul of the no personal benefit rules governing IRAs if as an individual you are in some manner named in the policy?

I am actually developing investor funded JV, I do not have experience in real estate investing, but very much connected with commercial and government construction, ground-ups included.