The limits are determined by state law.If an IRA owns an asset such as real property, a tenant sues, then they are suing the IRA. 

I really want to do the right thing as I am purchasing this home for investment purpose and will like to put this in an LLC to separate it from my personal assets and be cover from a liability stand point, but can't really afford the 20 – 25% down payment.

The loan limit was one of the reasons I was wondering if an LLC would be a better fit.

As used herein, "permanent improvements" shall include, but not be limited to, all repairs, improvements, and equipment attached to the property as fixtures.

Based on my limited experience, it looks like a good deal that I should go after.

There are also liability issues, privacy concerns, and asset protection factors to consider.

I'm no expert on the matter but if you are limited on information on the property to access what kind of cash flow it can produce I would stay away.

Yet in a 'high water/sewer rate' town nearby one of our duplexes only averages $95/month (4 adults & 1 kid).Your costs are definitely becoming a financial liability.

Talk to your attorney and strip the liabilities out of LLC to avoid the law suits that others discussed.

Then you're limited to more owner finance deals, which can be harder to find or sometimes overpriced.