I have around 50,000 in retirement that I want to put into a self-directed IRA.  

If I purchase this home with a self directed IRA and decide I want to live there later, how can I go about it without losing my IRA or being taxed?  

Thanks for the input, I didn't mention that house 2 is closer to me than house 1 and initially I was thinking of self managing.

.—(1) The landlord at all times during the tenancy shall:(a) Comply with the requirements of applicable building, housing, and health codes; or(b) Where there are no applicable building, housing, or health codes, maintain the roofs, windows, doors, floors, steps, porches, exterior walls, foundations, and all other structural components in good repair and capable of resisting normal forces and loads and the plumbing in reasonable working condition.

He is looking for a reputable, low fee, custodian company for self directed ira's to use for these projects. 

It is available through NAR, so I believe that means it is applicable in all 50 states. 

Read the book "Rich Dad, Poor Dad" back in 2016 followed by so many other self-help books which convinced me that I needed to get out of the rat race.

He does not want to fill out these forms because he does not want you to issue him a 1099 which would subject him to income tax + self-employment taxes.If you have employees or property in another state - you may now have nexus in the state which would require a state tax return filing requirement.

It's a bit of an art to pick out all of the items that are applicable and to make sure that you both get them all and also don't include something you aren't supposed to.For example, a monthly HOA fee would not be included in basis, but a paperwork transfer fee from the HOA would.You can also include title insurance, but not the liability insurance.  

Do you have issues finding applicants when you require the criminal records check?