I would maybe consider a percentage of profit in addition to normal rent?

I agree to pay buyer closing cost and additional for minor repair.

The last thing is that you've simply brought an additional partner into your management.

Sounds like a tough sell; if she's sentimental about the house, she probably doesn't want to see it become apartments for strangers.I can't even convince my friends with no kids to live in duplexes... they are just too content to pay $1,500/month for the privilege of not having to hear footsteps above them every once in a while.

I have not done a lot of research on laws governing self-directed IRA business transactions, but with self-directed 401ks, the IRS seemed to be pretty good at covering all their bases to make sure that if I am getting that tax benefit, I remain essentially housebroke until kids who are my age are calling me grandpa.

I mean you have been doing it already and since you can cover you debt service buying an house that will provide you two additional sources of income if you can make it cash flow that can also help you pay off your current debt, and as you pointed out you would also have a long term asset that should reasonable go up in value as well over time.

The kick is, if the company profits the first year, the family will invest an additional million and every year thereafter.

This second move would probably need a reason (more floor space and we are expecting a kid, a better neighborhood, easier commute) in order to be signed off on by your lender.  

In addition, a home that is updated and clean is going to sell faster than one that needs work.

We do allow for up to 2 pet dogs with additional pet rent and additional pet deposit.