The only way you're buying this deal is if (1) you are certain this area will appreciate quickly enough for it to be worth your time, (2) you are a high net worth individual and need a loss to a reduce taxable income, or (3) you are looking for a 1031 exchange and running out of time on your 6-month window. 

Also, flipping transactions if executed regularly are considered a trade or business and subject an IRA to tax on Unrelated Business Taxable Income.The purpose of a self-directed IRA is diversification. 

@Bruce C.The penalty for misuse of funds is 150% of the original principal loan amount, as well as federal charges.

That said we are choosing this direction because of Covid 19 and want to get more inane with state and federal funded projects since they pay rent FOR thr tenant.

What I have gathered here is that I would not benefit much from a cost segregation study now but potentially would if I did one in 5 years or so when I have net taxable income to offset.I worry what the laws will be on bonus depreciation 5 years from now.I think I am going to hold off on it for now.

Refinances are not taxable events, which is why we all enjoy going them so much!

Thanks There is no taxable transaction when you convert the rental to a primary residence.   

I'm not certain but there was a stall on the number of people that applied for SBL from the federal government which caused a halt in the lending process.

Anyway, quick look indicates it follows the Federal methodology. 

The downside is NIIT and inability to deduct investment expenses, other than investment interest expense, as investment expenses are miscellaneous 2% itemized expenses, which are disallowed, at the federal level, under the TCJA until the 2026 tax year.What a "trade or business" is, is based on case precedence and other authoritative guidance.