Nothing wrong with that but I've had issues with scheduling repairs and the like with similar individuals. 

It will be on my individual tax return since i didn't setup LLC for this property.

Your individual limit is based on your net worth and income.

What makes a self-directed IRA custodian different is that they are not purely connected to the public exchanges and limited to investing in stocks, bonds and funds, but rather have the staff training and paperwork to document the IRA's investment in the more individualized transactions that occur when investing in real estate, notes and other non-traditional assets.

You can even use these individuals to find new properties since they have a pulse on the local investing community.

It really depends on every individual case and a careful evaluation of the people you're going to be doing the deal with.

Think it won't effect A and B areas--look at the BMW 7's and Escalades tooling around in the tough neighborhoods (they have more than enough money to spend).Forcing people to unknowingly house dangerous hard to deal with individuals (between prison sentences) is harsh. 

2)  Need clarification from them if the 2 persons on lease will be on lease as 2 individuals or as in a business entity such as LLC.3)  The questions you posted above:  Do they have a cost for construction and itemized list of equipment?

I recommend setting up keyword alerts for each area as they are discussed in the forums daily with advertisements posted in the BiggerPockets marketplace hourly.One thing to note when looking at the individual markets, you can make or loose money in any market.

Typically water won't be individually metered on these types of properties (too costly due to impact fees).