@Matt Honeyford Sounds good, I can look him up on google!

@Jon Huber Sounds great!

If you consider yourself responsible (sounds like you are with house hacking and being able to buy a property), PMI is just horrible.

It sounds like you have a plan.

It sounds like an easy choice - if you don't like the numbers, the realtor and the basement flooding is simply icing on the cake I'd find another realtor who has good reviews/was recommended to you and explain the situation to him/her. 

The 3 quotes I have are over $300 so $240 sounds pretty good to me.

so it sounds like if i get a loan using my SDIRA as the down payment, i would have yo pay UBIT on the loan amount. so say a loan of 100k with 1k per month in income. 25% down using my IRA. i would have to pay taxes on $750 per month for the first year. then slightly less than $750 the following year because now the loan amount has gone down, and eventually my taxes would become $0 if i held it for the 30year term or so.

If there is any discrepancy later (and it sounds like there will be), you'll want that email to show you said that driveway was not community use and you want it to be CLEAR that she was sly, and you were upfront.

@Dave Foster This sounds like horrible advice, unless you have a ton of hard money loans.

You will need to account for the vacancy (1/12 month 8.33%), repairs (these are short-term items and it sounds like you have already done some of the work yourself - assume 5% of rental rate $130), property management (assume 10% $260), cap x (assume 5% - $130).