If this purchase went bad, could you absorb the loss and still have a healthy life or will it impact you financially?

Our partner has not been active with the business in 17yrs except for taking gains and losses on his half.

He is potentially going to pull his property off the market for you and wants to make sure you are someone to take seriously as the last thing a seller wants is to loose up to 30 days to someone that doesn't have the experience/stomach for the deal and that you're not just a tire kicker.You will have earnest money up (typically 1%) but you can still bale on him within your feasibility (due diligence) period and get all back less independent consideration.He's trying to vet you before contract.

Has there been a feasibility study done on this property for that many lots, if so what is the timeline looking like? 

The biggest losses I have had are properties that I did not visit often.  

But if I do this , and write off all of this , how then would this " Look " on my taxes, meaning...... wil it show me as taking a " Loss " on this Rental ?

Probably looking at a loss on my first flip considering realtor fees.

@Jordan Bentley your approach sounds good and feasible.

Is it feasible to get a HML to provide the funds for the down payment, and I front the money for the repairs?

There is not a feasible path to use the IRA to acquire property then move the property to your own name.Bottom line with a self directed IRA or Solo 401k is that it is a means to diversify that tax-sheltered retirement savings.