But if they don't willingly make the payment your only option would be to sue, and they have the upper hand to let the lender know about the sale possibly triggering DOS.

One more tip – people remember stories that trigger their emotions.

You would only pay taxes on all passive investments in a traditional SDIRA at distribution, unless you have a mortgage, then the portion of the income derived because of the mortgage will be subject to UDFI (unrelated debt finance income) which will trigger UBIT (unrelated business income tax). 

Very few people operate their LLC correctly and therfore this just gives them a flase sense of security.Moving into a LLC can also trigger the due on sale clause.

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event. 

Turns out, the previous owner did take many steps to mitigate the moisture damage and the home was very dry and mold free when we acquired it.

If the $700K sales price is not used correctly to acquire qualified real estate, the exchange could fail, triggering tax liability.Future exchanges will depend on the total value of the replacement property acquired, so entering syndications could limit flexibility.

Personally, in this market, I would work on saving up and really doing my best to find a great opportunity and pull the trigger then.

Roof is dried in. 

I'm living off of cash reserves and burning through it - there is a well dry date looming on the horizon.