If you do the right renovations upfront, you can get the best of the "less qualified" and produce good cash flow.Have investor client who did such that.

If you are going to be owning income producing property, the actual ownership entity should generally be registered in the state where the property is located.

Answer [Note: From CPA and not this is NOT legal or professional advice]: When you invest in a business (syndicate = business) with your IRA, the IRA will be subject to UBIT (unrelated business income tax) and UDFI (unrelated debt financed income).For our purposes, UDFI is produced when an IRA uses debt to purchase real estate.

I give them specific details on the what produces the bug and they still treat it like it must be user error.

Use the proceeds for strictly income producing property. 

Contemplate reasons an owner would want to sell an income producing property, AND be willing to finance and wait for the full balance? 

Healthy cash reserves (which include money saved/earmarked for Capex) ensure you can hold onto your property and allow you to sleep better at night!  

My guess is that neither option will produce positive cash flow based on the purchase prices.

@Blake HornbrookI would definitely stay away from big banks such as B of A, PNC, Wells Fargo, etc. only because there is so much red tape around leveraging them to acquire income producing properties —especially in the beginning stages of building an RE portfolio.

My gut tells me to try and flip some median single family homes, build up some short term cash for my entity that i can then leverage to start investing in larger mutli-family/apartments than will produce cash flow and ultimately put me on path towards being able to leave my current career and fully delve into investing.