An IRA may purchase property and use a mortgage to do so.The mortgage must be non-recourse, meaning no personal guarantee from you.The use of debt-financing within an IRA does incur a small tax known as UDFI, whereby the percentage of the income to the IRA that is generated by the non-IRA (borrowed) money is taxed.  

You also need to stop dreaming about quitting the 9-5, unless you have seven figures of capital there's no way you'll generate cash returns even close to live off of.

When receiving funds from a non-related investor it is important that you have that money in your account for over 60 days (at least the time to generate 2 monthly bank statements).  

Otherwise, you zap your investment account to pay off the debt and then find yourself in the same position down the road.Another thing I would try to do is generate more income.  

The best options I've found are occupied properties in C/D neighborhoods in Sacramento that would generate around 12% COC, but where I likely wouldn't be able to recoup significant capex and where tenants *might not* consider rent their top budgeting priority.

Could they be repaired and be a cash flow generator for your property? 

Your core business is not based on revenue generated from "Hold Deposits". 

I would heavily discount the value of the home and the revenue they generate as not being legally attached to the spaces they are rapidly depreciating assets. 

So to @Jay Hinrichs  point, talk with your family and friends, you may be surprised by the interest you generate.

In this case - the encroachment affects about 3.5% of the property...so that could be a basis to calculate an amount for this (or as a basis for the escrowed amount).Now - I also know the seller has title insurance and may actually have a valid claim IF he didn't know about the encroachment when he purchased (the survey showing the encroachment was generated when he did a refi on the property...but I'm unfamiliar how that process works and how long it takes.