So there is some potential for a BRRRR there but I don't have the funds at the moment.

You'll need a large reserve fund to absorb unforseen costs.You'd be better to buy the deal using bank debt -- I'm happy to introduce you to my contact at TowneBank.I'd argue market cap rates are closer to 7.5%.

As @Dmitriy Fomichenko said the rental funds must go back to the IRA.

Chances are if you don't have the funds to close or a proof of funds then you won't be winning anything at the auction or with the banks.

My question:  Is there a service that I can engage that will automatically deduct funds from his account and deposit to mine. 

You have to make the bet that you might do well, break even, or have a big loss.If a buyer has limited funds and net worth they do not need to get sucked in by the potential of high cash flow and landing nice tenants that pay on time and take care of the place with low income type properties.Think of this.Someone buys a piece of junk and hopes the building doesn't fall apart and the tenant pays on time so they can cash flow 200 to 300 a month based on current market rents for that product type.So 2,400 to 3,600 a year if everything goes perfectly with no surprises.

i want to buy a retirement home with self directed ira funds. how can i do this without taking the money out and paying tax on the withdrawal amount?

All of what Vaugh said with the addition of:How quickly do you send inspectors for a draw request and how soon after completed inspection will I receive the funds wired to my account.I have worked with several and most will give similar rates/points.

- How fast can you fund? 

Mutual funds, man.