Putting the tax implications on the back burner...What is the legal exposure here? 

My first property will be debt free within 3 years of buying it.

@George Ozoude,Here is a list of self-directed IRA companies that BP has put together:https://www.biggerpockets.com/rei/self-directed-ir...Also, the topic of self-directed IRA is a frequent discussion on "Tax, Legal Issues, Contracts, Self-Directed IRA" forum category, the link to it is below, you may want to search there for related discussions (there are some good ones), the results may keep you busy reading for hours:https://www.biggerpockets.com/forums/51-tax-legal-...Hope this helps!

@Chris ConnollyIf you plan to utilize debt financing, you may want to consider investing the IRA in a C-corporation and placing the passive real estate investment through the C-corporation. 

Total Asking Price is 1.8 MillionMonthly income= $30,135Monthly Expenses (excluding debt service)= $15,003Would be looking at conventional financing of 5.25% over 25 years with 25% downOwner would also be open to seller financing

Can you handle extra debt with your current income?

I personally would like to continue buying properties to rent out every year but he feels that is risky and will lead to unpayable debt.

Foremost, do thoroughly check out the current situation regarding legality/licensing/hotel occupancy taxes for short term rentals in the city/area.

They are great for short term debt that you will pay back quickly.If there isn't a solid plan to pay it back quickly, cash out refi usually makes the most sense. 

Hello BP, I have a question regarding hard money loans and the debt-to-income ratio.