Brian presented the most likely reason this article was written in the first place, and Jay gave you the only way (in my opinion) to use your SDIRA to invest in RE. 

You want it for at least 20% below market, which is $132,800.You go through with a contractor and he estimates $20,000 in repairs so you pad it a little and say $25,000 to cover some undiscovered issues.You offer the owner $107,800 and tell them this is your bottom line to ensure you can make the necessary repairs and turn a "reasonable profit."

I think it's probably the highest reason for turnover in apartments, at least as far as complaints go.

So based on those two things I'd say it's pretty reasonable.

I go up slightly (my initial offer bakes this likelihood in) and if the seller counters again I explain why I can't go any higher (all good reasons - winter's coming and the gas bill will not be low, it'll take at least two months to rehab a unit/units and fill vacancies, etc.). 

As in, a 10,000 person town I'd stay away from - you want a reasonably diversified economy...Here's the main concern I have with your startup plan - Inevitably investing out of your area will put someone locally in a stronger position with regards to negotiating. 

AP is a form of insurance - litigation insurance.So, if you have enough to protect and reason to fear litigation (and it sounds like you have), then you might want to look into asset protection strategies (which includes establishing of LLC).

I did all cash for my first deal for some of the reasons mentioned above. 

Owner financing may be very appealing to them for several reasons.

The reason for me wanting to do REI is to be able to achieve financial freedom and do what I truly want with my life.