I mention this only to give perspective that I should have no problems renting the rest of the home even though the owner (me) maybe sometimes living in the basement MIL suite.So here's my predicament.  

I don't see how a newer investor (like yourself) can think they have a better perspective on the situation than the large guys operating there for decades.  

Whether that is an IRA served by a conventional bank or brokerage, or a self-directed IRA capable of investing in real estate does not matter one bit from a tax or compliance perspective.  

I mean we could just use 75% of gross - PITIA for now but when you get your tax returns in on an application you might get a completely different answer.It looks like your DTI will be low if you file both properties in a way that will net positive income from a lending point of view.You'll have the ability to qualify for about 230k in loan approx assuming all rental properties "net zero," income from a qualification perspective (most conservative calculation).

Podcast 191 also touches on it some, but from the horror story perspective.

She has used it as her own, paid a small amount of tax on it and has never had any issue.This is all fine for us, as cash investors....My concern is going forward once we relist the house for sale, will it be an issue for perspective buyers when trying to secure a mortgage if the title company won't insure the second parcel/paper road?  

Hey BP family. I'm TeAn. I've been interested in real-estate since I could remember. Recently (2 mths or so back) I ran across Brandon's book " The book on rental property investment". Talk about good read. I read it ...

Just offering a perspective to consider.

It's very hard to find flips that make sense from an annualized return perspective when purchasing with 100% cash instead of leveraging.

My properties are managed by 3rd parties and the accounting software is "baked" into the property management software.I don't know how big your real estate empire is but from my perspective, and as someone who is very skilled in Excel, my recommendation is that you find a good bookkeeper who is really good in Qbooks and have them assist you with setting up your company the right way in Quickbooks such as chart of accounts, categories, lists, etc.