I have and idea of what a reasonable nightly room rate could be charge per based on what else is available in the area and my present experience in the hotel business here. 

And the reason is if you contribute funds into tax-deferred account you will not be able to use those funds until you retire.It is possible to use a self-directed IRA to buy investment property, however you personally can not benefit from this investment until retirement and you would not be able to use FHA loan.

Would it be reasonable to expect to be able to raise rent with remodeling the units or is 400-475 pretty close to market rate for the area the multifamily is in?

DTI= $55K/$108K = about 50%From reading, it seems to me that part of the reason banks take 25% off of the gross income is to cover for PITI, so it would seem redundant to count it again as in example 1 above.

He has no real reason to lie where as tenants will usually lie to strengthen their position.

For example, if you go something residential 4 units or less, you won't want to incorporate for many reasons.

One of the main reasons is we want to get experience as landlords to be able to grow from here and work into a stronger portfolio.

I will assume we can improve the property if there's a very clear reason for it.  

Seems like a reasonable place to go bargain hunting.

I will do anything reasonable to avoid the expense of turning a tenant.