I will look for properties that I can easily Force Appreciate (increase rent, increase occupancy rate, decrease expenses - e.g pass utility cost to tenant, etc) ... this will help increase cash flow and the value of the property very quickly (say in 90 to 120 days).  

With 15 years of landlord experience, I personally find that keeping the rents low DOES decrease turnover, the overall amount of time my properties are vacant, which in the end, makes me a lot more money.

Profit would be taxable unless put back in the IRA.

Since the LLC is just writing a check (and again this is simplified for the purpose of this post) the amount is just an expense to the business and all the burden of taxes falls on the individual.If you do a distribution, this isn't taxable but instead reduces your capital by as much in the LLC (which if you are the only one taking distributions is probably not what you want). 

The authority to deduct business expenses comes from 26 USC § 162.26 USC § 162(a) states that [t]here shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business...."

One thing that will probably increase his chances of success will be if he is willing to either use leverage or decrease his expected return. 

@Jeff Sadosky This is a non-qualifying disposition and as such, not a taxable transaction.

The number of renter households increased by 5.69% while the number of owner households decreased by 11.59% during the same time frame (a lot of people moving back in with family or sharing housing!).

Additionally, taxable gain on the sale may be subject to a 3.8% Net Investment Income Tax.

As my deals have increased, and my time has decreased, I'm feeling the urge to hand this task over to a CPA.Of course, I completed 2014 on my own just like normal.