Most of the scenarios proposed to us by potential clients for such joint ventures would likely create a benefit between the parties and not pass scrutiny in an audit.There are many ways to safely and productively grow your IRA investing in non-traditional assets such as real estate in a standalone fashion,  There is no need to take unnecessary and foolish risks with your retirement savings.

I actually think certain types can be decent investments IF you do the homework and read the docs and know what you're buying into.I personally avoid high rises (too much cap ex and high maintenance costs mean poor return), poorly maintained buildings with lots of deferred maintenance, avoid non-warrantable buildings or complexes (hard to finance), I prefer townhouses or 4plex style condos with only one common wall and nobody above or below, that limits neighbor and tenant drama. 

We've been working on bylaws, registered as a non-profit, set up a bank account, drafted application forms, discussed membership fees, and a whole bunch of other stuff.

Low income rentals - tenants don't ask - they just paint and you find out once you had to evict them for non-payment. 

I have noticed over the last 2 years or so that there's more applications from people that work from home or have other non-traditional jobs, and I live in a pretty traditional area so it's not like a coast vs. flyover thing.

Obviously every house won't be a winner either so when we don't make much money, I won't still be on the hook for paying say 10% back.This investor wants to sign a 2 year deal with me, and non-compete so I can't use other investors money or go do this on my own. 

(This particular municipality doesn't release usage stats, either aggregate or by address nor have any figures been shown.

What are you seeing out there now with regards to loan terms for non-owner occupied, small multifamily properties (1-4 units)?

I am referring to using 401K and setting up a Trust with a checkbook account.Lenders will require more down I realize.  35 - 40% and I will be working with portfolio lenders and non-recourse loans.So my plan is to work syndicated commercial deals where you get your money back out in 6 - 12 months. 

But what kills is that FEMA levies a $250 flat fee, on top of the insurance amount, for non-owner occupied properties and/or multi's.