I don't think there is a place where you can just sit and read all things required.  

You are using your IRA funds to ultimately gain a personal benefit (as is your friend) - access to cash that is otherwise unavailable sitting in your IRA.Furthermore - you cannot lend the money to your friend from your IRA, and then have him give you the money personally (outside of his IRA).

We partnered with another investor that has been sitting on these properties.

With my 3-flat I need to increase monthly cash flow as quickly as possible, I can't be sitting on roughly $130/month.

Houses that sit closed up with flooding in the basement for long periods of time can have all kinds of drywall damage and warping subfloors etc.  

This did not sit well with us because we are just two people who are looking to move into a bigger home.

I was sitting outside of an Exxon gas station with $10 to my name (at least until my paycheck came through...

If it would sit vacant for two months waiting for a smoker to rent it, you've probably paid for your new carpet.You can wash blinds - either put them in the bathtub or the driveway & go at them with an ammonia-based cleaner & the hose - it may not be worth the effort, though.I've been through this myself - house with 20 years of non-stop smoking.

Also if you have enough cash without it then there won't likely be any "seasoning" issues but if you HAD to use that cash you would want it sitting in the bank for a couple months so they don't give you a hard time about odd huge deposits.Also since you said you would live in it to start at least the last plan of taking out a HELOC on the new place right after buying it is totally fine.  

@Jody Young I tend to use the same kitchen appliances (during the last lowes sale - i bought 3 of each) I now have 2 of each still sitting in home waiting for the next house to progress further along to the install.