I don't believe it'll be that easily rescinded for those who are already grandfathered in the program.

There are others who maximize leverage, think that you can easily build a cap-ex fund over time (hint: cap-ex issues aren't linear), and don't insulate themselves.Side note: if the market doesn't go down then those highly leveraged investor with no cash sitting in a "wasted" reserve fund will get a higher ROI based on their capital allocation.  

If you're combining IRA cash with a non-recourse loan on a rental property, you're going to have to pay UBIT which will eat into your returns rather dramatically.

It now generates over $250,000-$275,000 in cash flow a year EASILY at least, without factoring in loan payments.At this point, I think before you finally even make a decision to purchase this property - consider the equivalent alternatives.

Do you have a set return for cash on cash?

We setup a spreadsheet where we could drop in a few numbers and get the return figures we wanted out.

Future: I am currently deployed again but upon return I plan on getting a HELOC and looking to getting into a Fix n Flip.

In a single meeting, I can set those folks on the right path to return to me in a year or 2 ready to buy.You do you though.

Also, if I decide to move somewhere else, I can easily rent the unit I live in for at least $1000.The concern is that it is in a flood zone.  

All true pre-foreclosure information should be easily accessible via a general MLS Tax search or county search combined with Spokeo or Anywho to get phone numbers, but many other people will have that info.