If #2 wasn't the case, i would have def told you to keep your house as you've seen a tremendous increase in value of your house in the past 5 years, but since you can't bank on that any more, seems like there are more downside than upside in keeping the property (potential upkeep costs, dealing with tenants, etc). 

., have been a tremendous help and really are getting me excited for the possibilities.

@Ben SmithWhat you have asked is a tremendously broad and open ended question.The simple answer is that a self-directed IRA (in various forms) is a means of diversification that allows the IRA to invest more broadly than just the stock market. 

I've been considering just going to the owners and letting them know about this guy and he tried to sell the home illegally and let them know he IS interested in buying even with the $12,000 loss.Any help would be tremendously appreciated.

First off, you've done tremendously well.  

This is nothing more than a tremendous and ill-conceived government money grab.  

If you have the ability to play in this market you will experience some tremendous appreciation, but cash flow will virtually be impossible unless you implement a mid-term or short term strategy. 

BP has a tremendous amount of information to help you, but it is only available if you seek it out.

BP has a tremendous amount of information to help you, but it is only available if you seek it out.

BP has a tremendous amount of information to help you, but it is only available if you seek it out.