It really comes down to being educated about the potentials and risks of RE in general and a given niche (apartments in your case) in particular.

the proration requirement is all the gain prorated between all the qualified use (as a primary residence) and non-qualified use (as an investment property. 

I found an REO with a "special condition" that seems to scare others away but I see as a non issue opportunity. 

Columbus is an incredible market (real estate and quality of life)...everyone loves where they live, but it's really exciting to see the growth and expansion of the city here...I wouldn't hesitate to say (besides the weather in the winter ;) Columbus is one of the top 5 cities in the country...my prediction was the population would double 2-yrs ago and everyone laughed...but the city is on track to make it happen.Is there a particular area of the city you'll be focused on?

Just as I would not expect an institutional investor to buy and manage homes, I don't think I'll be doing that with the SEP either.Here's my recommendation:Hands-of investmentf: Go with the SDIRAHands-on (or potentially hands-on): Go with a typical (non-IRA) process

Are you good with a non-appreciating part of town if it has good cash flow?  

You can't compare that cash flow vs a non-owner occupied 25% down cash flow. 

We didn't do it from the beginning, because we felt negotiations were easier  under my name with this particular seller, and we needed the seller to sign the contract ASAP before a higher offer was submitted. 

If they come through then the hold deposit is converted to Security Deposit but if they fall through then the Hold Deposit is forfeited, non-refundable.

Things like vacancy, collection losses due to non paying tenants, turnover repair costs and unaccounted for capital expenditures probably surprise many.