Crystal,You could use the BRRR strategy, which involves using a hard money lender to buy the property and then rehabbing and renting out the property and ultimately refinancing with a traditional loan.

Originally posted by Account Closed:@Charles Odie How much of your money are you putting in the deal?

The Taxes are based on the deduction you took when contributing to the account and if you have the early withdrawal penalty, it is that, a penalty to punish you. 

Originally posted by Account Closed:@Josh Anders Do you have verified proof that auction.com was bidding?

There are various reasons the project may not qualify for financing:  owner occupancy percentage, one individual owns more than 10% of the units, the community is involved in some sort of litigation (usually construction defect), or the HOA finances are bad (underfunded reserves).  

Instead of putting money into a retirement account and losing general control of it, why not look for alternative methods to reduce current year passive losses and tap into prior year suspended passive losses? 

@Patrick Liska the furniture is part of the property and therefore covered under damages in the lease and because they are student rentals, parents are co-signing on our rentals so ultimately a responsible adult is held accountable. 

This will not hold up in a court of law, as there is "Real Property" involved in the sale.

My thinking is that I need to create a set of business accounts using my name as the owner and flow my income/expenses on these first two properties though those accounts and then have a separate set of accounts for the LLC activities related to any new properties.

Once you begin to get more involved in the business, let me know and I can give you more information on how to go about buying them and working with investors.