Is there a way to finance something like this with 10% of my own cash or get the capital in a different way like asking the seller for down payment assistance?

capital and he will be boots on the ground/management. 

You should also hold it for two years to avoid the capital gains tax if you sell it sooner. 

Even with a small amount of capital, please provide your investors proper disclosure. 

Probably one of the hottest in the country.You can do a reverse 1031 Exchange if you have the capital. 

Then the capital gain is $325K - $225K = $100K.1) If we don’t do 1031, how much tax do we own?

@Anh Le Doing a 1031 exchange to avoid capital gains taxes might not be a bad idea for you in this situation.

Here is where I start having problems: raising capital.

I'll just point out to anyone that may partner with Mike that while you get high CoC returns with Subject-to deals the absolute cash value of your returns will be low due to the inability to invest large amounts of capital. 

If the IRA owns 50% of the partnership the IRA must contribute 50% of the capital, not 100%.