The other method is to use a “safe harbor”, i.e., the specific procedures laid out by the SEC in Regulation D.  

@Polat Caglayan I already responded to another post of yours.Your question will take a lot to answer correctly, so please DM us to schedule a chat:)Thanks @Jonathan Greene!

Detroit has a mix of affordability and strong rental demand, with properties under $200k that can cash flow if approached correctly.

In this example the initial investment would be $50,000.So the owner of the IRA would have to pay 37% in taxes seems to negate the interest paid of 12.5% annually.Do I have this correct?

Told me the violation wasn't corrected in the 30 days required timeframe (yes you are correct, the repairs were done in time but they didn't come out to confirm). 

Was looking to save where possible in this market but the method I proposed is not worth the consequences. looks like 20% down it is!

@Curt Smith @Jay Hinrichs are both correct.

STR is a slowly dying model that exploded in the last 10 years and correcting big time.

Unless you negotiate a new contract or addendum with your PMC, they do NOT have to abide by any requests/demands you make that contradict what's written in the management contract.If they have in fact NOT followed the terms of their contract, then you'll want to send them something in writing pointing out the specific language in their contract that they violated and ask what they plan to do about it.If they fail to correct or address the issues, then you'll want to start looking for a new PMC.

Quote from @John Friendas: Quote from @Chris Seveney: When buying at auction you will have zero ability to sue (and win) an auction site if information is not correct.