The malicious damage coverage is nice, and would be good, but I don't think it's frequent enough to make it worth it for us.  

"REPEAT".

you will then be off to the races, you can repeat these steps periodically to strengthen your score!

And if necessary use PM (private money) or HM (hard money) to do the rehab.Keep repeating this a few times, and your monthly cash flow from these units can carry....

Simply state to her that you do not wish to see a repeat of the situation and leave it at that.

Accepting that I would pay taxes on these profits but now could repeat process outside the SD-IRA funds.  

Those inclined to use their family members to sell and finance to avoid going over the exemption number could be construed as engaging in a criminal conspiracy, which could mean RICO statutes being engaged.I would repeat again, MLOs cannot just handle the origination paperwork and keep one legal if the end lender/servicer does not have a  license to lend.

After this I know I cannot leverage that with a bank but what kind of terms do you believe I could get with a private investor if I essentially would like to repeat the same process leveraging my 12 unit?!

Off the top of my head: a drug overdose, a death, walking in on an intruder (2x), catching an intruder on a surveillance camera, pipes freezing and then bursting in cold weather, local prostitutes frequenting my tenants, water line leak to fridge icemaker that destroys a kitchen floor, the list goes on.

But unless we have another mortgage crisis with millions of vacant foreclosed homes your not going to see a repeat of those buying opportunities 7 to 10 years ago.