Always run the numbers of a home, even one where you plan on living, like an investor.In terms of headaches from phone calls and stupid problems, I realized after listening to those stories, I did not want to deal with it, so I use a property manager.

Of course this isn't as applicable for IRA investments made in housing flips, but for those individuals investing in larger multifamily or commercial buy and hold RE investments, SDIRAs can help you gain exposure to direct real estate and realize superior cash flow returns relative to most other passive investments. 

Reading more on the 50% rule, as well as the 1/2% rule, the more I realize that they are pretty useless other than looking for VERY quick numbers to get a very rough idea of things.

Not that there's anything wrong with your business plan, but this is what I can see as a problem:If you don't, yet, have any deal under your belt, you don't realize how flexible you need to be in this business.

I debated whether it was neccessary or not but realized it could help my business growth.  

We attract a lot of clients from the NJ area as many realize just how close the commute actually is. 

If you don't you may be looking at an upset family member when they realize you bought this from their Dad/Uncle/Brother....

Getting the home rent ready took more time and money than we planned, and along the way we realized that a more sensible option was to sell it with owner financing.

Is it the 10% return they are interested in or the $10,000 minimum cash-on-cash realized  ("they want $110,000 back..")?  

Its important to realize however that just the mortgage payment alone can be no more than 46.99% of your total monthly gross income of 5k Plus the rental income (minus 15-25% factor depending on area).Depending on what the other unit rents for you may be able to qualify.I hope this helped.