It's based purely on the cost/rehab unless the appraisal comes in silly low because you've spent more than the home is currently worth. 

My goal here would be to use it purely as a STR, with my family using it periodically throughout the year whenever it's not rented.

You can still find cheap properties and the rents are strong relative to the cost.I like to be in a 3 bedroom about $35k acquisition and rehab which will rent for $675-750 ($675 Section 8) which gives me around 15% cash on cash return after taxes, insurance, vacancies, repairs, etc.Compare this to Martinez, Evans, or West Augusta where you will be lucky to find a 3 bedroom fixed up for less than $100k and the rents are going to be $800-1000.Of course this doesn't take into account leverage or appreciation and the South Augusta area is "less desirable," but I believe the sweet spot for single family rentals is the "blue collar" area with strong employment, good public transportation, and solid homes built after the 60's.Be mindful this model is purely based on cash-flow and I do not consider appreciation.  

¨Winning¨ at the time of purchase is huge and the analyzation (asset, market and #´s) are pure real estate investing basics. 

This is a common misconception where people sometimes assume DSCR loans are purely based on the asset.

From a pure tax prep perspective it was lacking... no probing (which may have uncovered that child tax credit thing since we didn't know what it was and said as much) and no review of taxes from them before submission.

Is this a pure investment?

I can't speak to other cash flow markets specifically other than Michigan since I personally invest there..but the pure cash flow markets do have drawbacks.

Overall, we are collecting $1,500/month in gross rents, mortgage is around $600/month, expenses are around $350/month, so the pure cash flow is around $550/month.

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.