You have the same $7k/mo you started with for your home purchase.Reserves should be a non-issue assuming you have retirement accounts with that kind of income. 6 months reserves is only $20k, a pittance.

. … and your not doing tax returns for them or other accounting and such and your not on their loans with them etc.but I can see how @Andrey Y. 

This account has been growing steadily (but not as fast as I'd like).

Account ClosedSeconding the concept of "just don't go there".IRS rules are strict about avoiding any direct or indirect transactions of provision of benefit between and IRA and a disqualified party, in either direction.You and any LLC you own are disqualified to your IRA.The IRA may not lend to you or any entity owned by you or a disqualified party.The penalties for engaging an a prohibited transaction are severe, and not worth messing with. 

Once you run the actual numbers or take into account HML fees you arent making money.

Can I hold them accountable?

From what I've read and think I understand, the biggest mistake seems to be not accounting for all the possible expenses. 

Account Closed Your scenario is not realistic.

We've been working on bylaws, registered as a non-profit, set up a bank account, drafted application forms, discussed membership fees, and a whole bunch of other stuff.

Account Closed.