Some jurisdictions prohibit or restrict this in their zoning....BUT if you can get around all of that, I think the upstairs apartments might be perfect for AirB&B...You would not have neighbors complaining about people coming going, different neighbors every week...and on and on.  

Under limited and very narrowly defined circumstances disqualified persons to an IRA may partner with such IRA.In the scenario that you present, in which the property will be held by an existing LLC of which you're the member, using funds from your IRA for a down-payment would certainly be a prohibited transaction.An alternative would be obtain a private loan from an IRA of a non-disqualified person to fund the down-payment.

Good to know that a carriage house might be better if other STRs will be prohibited with the new laws.

Some condos limit or prohibit renters.

GRANTEE HEREIN SHALL BE PROHIBITED FROM CONVEYING CAPTIONED PROPERTY FOR A SALES PRICE OF GREATER THAN $___________________ FOR A PERIOD OF ____ MONTH(S) FROM THE DATE OF THE RECORDING OF THIS DEED.

The association can prohibit rentals in the building.2.

There are currently utilities on the property; but since it is still a somewhat rural area only septics, which is somewhat growth prohibiting at the moment.

I informed Bob before entering into any of this that we would need to run a credit and background check on him to ensure he could, in fact, qualify for financing, I would need to inspect the property, and would need to confirm the HOA would not prohibit this transaction in any way.

I find full replacement cost generally is prohibitively expensive, for instance we bought a property in 2012 that is a rehabbed school that is all brick and will outlive me and my children.

Otherwise, the process and the prohibited transactions are the same across the board.