Unless you are talking about hard money or private lenders that are individuals versus banks/financial institutions. 

But there is a rule on 750 hours in real estate activities that they materially participate AND 50% or more of your material participation in all businesses, along with material participation (subject to a grouping election for rental real estate).

If you were to setup a self-directed IRA, it could not participate in your personal investment transaction in any way as that would violate IRS rules against self-dealing.Leave the IRA alone and perhaps distribute $3-5K if necessary to get your deal done. 

Depending on how the lending institutions feel about jobless claims it could have a tremendous affect, or negligible one. 

I am new to this, and want to ensure that any partner I take in participates in an equal amount to make the deal fair. 

He lives across the country, and wouldn't be participating other than the money aspect.

The private investment you talk about not  is not the typical institutional fundraising that you are used to.

There are plenty of loan options for investors who don't wish to reside in the rental, you just need to find the institutions that do such loans, and you also want to look into how they differ from other loans.

Lawyers often have an easier time working with other professionals and institutional clients precisely because they have a good knowledgebase.

Another pro would be that there are a lot of buyers who cannot meet the criteria of traditional lending institutions, and therefore entering into an owner financing deal could be their only option.