But the case where you are buying, rehabbing and selling within your IRA would in most cases not be applicable for UBIT, here is food for thought or arguments:(1) Your IRA is not you, and your IRA is for your benefit, and is managed by a directed trustee or custodian for your benefit(2) Any investment in your IRA will be deemed as Passive Activity, since you cannot materially participate in the investment from your IRA (else it is a prohibited transaction)(3) Your IRA does not file any self employment income taxes(4) Your IRA may file UBIT based on UDFI (assuming the IRA has borrowed funds for acquisition or rehabilitation)Now if your IRA invested in an pass-through which did the flips as you describe, the entity itself first must satisfy the requirement of a "real estate operating company" to receive any exemption, else if it does not it could generate a UBIT for your IRA as an "operating company".As others have mentioned, please work with a knowledgeable professional in this space for your specific situation.

After "First Thursday" of the month, the food trucks hang out.

(Just food for thought)On the mentor part, that's completely up to you.

He said that that they love investing in businesses especially the food space because they can make a lot more money than real estate.

I also need steady work for my employees so I don’t loose them and so they can food on their family’s table. 

You will also get less food waste down the drain, so less chance of plumbing damage.

Plus to cover rent and food while on the road selling.  

If that happens, it will probably stimulate the economy.What I mean is it gives people a choice to re-invest or to buy a Luxury Yacht, or a new Mercedes AMG.On the political side they are probably doing it to increase the tax draw so they can have more money and control who gets it when it is distributed vs stimulating the economy.In reality the 1031 is a pain due to the rules, but it does allow faster accumulation of wealth than if you paid taxes on it.In many areas the basic necessity of food is sales tax free, they should make all income from the basic necessity of housing (real estate) tax free--like tips used to be.

We can't check every room during this visit but we can usually tell if there are animals present, either by smell or food bowls, etc. 

Our only expenses are the daily ones, partial mortgage (house hacking), food, utilities and child care.