I personally am in favor of using self-directed Iras for real estate and real estate related products.

Of course, if you could refinance into more favorable terms that would be a better option.If you want a retirement plan then multifamily syndicates will pay a 7% preferred return, offset against depreciation and you also get equity upside.

In a year the numbers will be more favorable as houses turn over.

Even with my current commercial debt exposure a new lender gave me the money with favorable terms (this deal is a complex which needs stabilized too). 

Do you think this is worth taking since it is the only lender I can find to do these terms, or is it worth it to continue the search for someone that could do it with more favorable terms? 

I'll make some points in favor of doing it as you already know many reasons not to.

However, once that time period is over no idea why they would favor an owner-occupant offer over an investor as I typically feel like investors are more likely to close without hassle.

If he's also putting up all the cash, then 50-50 or even 60-40 in his favor is appropriate.

Do yourself a favor and save the headache and heartache with OOS investing.

Now I did this up on seller financing at very favorable terms for 9 mo which will aloow me to get through this with little to no money in the deal and with some equity, but and lets say I did a 20% down payment loan on the full 100k.