Also, when I eventually sell the property and am required to begin withdrawals at age 70 1/2,  wouldn't my withdrawals be taxed as ordinary income vs being taxed as a more favorable long term gain outside my IRA?

Increased rents during the option period, which could go towards the eventual purchase down payment (up to you, but you would keep the extra rent if they don't eventually buy).

We are tentatively planning to keep working in our business for the next 6-10 years while building a portfolio of properties, eventually selling or just closing our business when we can afford to live and continue to invest extra without the business income.My house that had an extra bedroom when it was just my two boys is now bursting at the seams.

Eventually we could move out of the duplex/triplex if her condition gets worse and she needs assisted living and rent out both units.The building my MIL is in right now will cash flow nicely when she moves out (about $900/mo).

Maybe this path will eventually lead me back to California (fingers crossed).

You're technically buying the house on the front end at a discount with the hopes of rehabbing it to force initial appreciation and renting it (BRRRR) to eventually sell it for a profit (flip) but you can sell at any time.

We have a good relationship and basically after the job we are finishing up now (an apartment building rehab) he is looking to do some flips on his own and then eventually get into buy and hold. 

I would add that if your plan is to eventually turn into a rental like you would with your current place, then a pool is a negative, not a plus.

It's tight, as there will of course be closing costs, and some renovation costs, but I want to show I have the money in the account.I can open an LLC for 250-300 dollars within a week, or I can just work with a title company to show a sort of temporary LLC in case I don't get the house.I need to put down earnest money (say, 1,000).All of this requires time, effort and a bit of difficulty as I live overseas.I know I won't get every REO I bid for, but I was wondering if it is worth it to do all this, assuming the bank will reject my offer, in the hope that there will eventually be a property that is worth what I offer for it, and I will get it if I keep making offers.Also, if I show I have an LLC that turns a profit, what are the tax implications?

It's not the biggest city in the US and I can guarantee there will be people who will eventually hit the good areas with due diligence and a 300k cashout on their mind. and yes I did kinda just reveal where my properties all are.