Not a deal breaker in most cases, but be sure to be aware of this and discuss with your CPA tax implication that your IRA will owe if you decide to go this route.Self-directed 401k on the other hand is exempt from taxes on leveraged real estate, therefore if you are eligible you may want to explore this option. 

That is, don't buy any notes at first.Instead, get good at marketing for notes (that is, finding notes through either direct mailing from purchased note holder lists or networking through professional referral sources)-- I like the preformingnote space (the "ma and pa") note holders as I am good at finding them and I'm used to dealing with these types of people...a lot of the time, they need guidance and that's where I come in.

I am trying to avoid an FHA (203K) because I do not want to get stuck tacking on thousands of additional dollars (that I will be paying PMI on) to pay a professional to paint the inside and outside of the house to meet the "no peeling paint" requirements in order to close on loan.

Though I did not use his services I saw his operation and work ethic and found him to be professional and innovative in his thinking and business approach.

I'd encourage you to explore simply selling the house and letting your parents take the tax free exemption. 

I would further imagine that if you wanted to purchase one or more of these properties, that you could get a reinspection after having a professional lead abatement contractor clear up the issue. 

All forms of communication can be electronic and you never have to meet in person...even if you are self managing...My tenants are trained and empowered to problem check and resolve issues on their own...if they can't figure it out, it's their home and they can call a professional to fix it and cc me via text.

His background is different, meaning - he's not a building/contractor guy by education or professional training. 

It is usually easy to identify who is a landlord and who is a professional property manager.

He is a professional we are just a bunch of people on the internet.