If the transaction is to be a flip, and you do that type of transaction with any regularity, the gains are subject to unrelated business income tax (UBIT)Reference IRS publication 598 for the above topics, and be sure to consult with your tax advisor before proceeding.Even with such tax exposure, you may be able to garner better net return on investment for your IRA with this type of transaction, but you want to understand that going in.

On the lease signing day, the PM company said the tenant didn't show up, which we just viewed as an opportunity to continue to work on the house and no big deal.Then, we get a call out of the blue directly from the potential tenant who made a really strong case about how they'd be a great tenant, how much they loved the property and wanted to be there long term - it was close to many excellent public schools (walking distance to a great K-5), but they really had a huge problem with the responsiveness and communication of the Property Manager and felt that they blew the deal by not showing up at other agreed upon times and just general flakiness.The thing is, this is our first rental and we don't know what to expect from the Property Management company, but the criticism on the responsiveness and availability does ring true for us, many emails have gone unanswered (we've had better luck on the phone).

@Jonathan Mednick  I do enjoy this thread.And I can see your point on too much under one roof.. there was a company in Utah operating out of Indy and KC  that did this and they got them selves into a pickle and one of the issues was they were able to stave off bad situations by buying there way out to keep up appearance's until it melts down... and a lot of it stemmed from HUGE guarantee's that were just not sustainable in the asset class they were playing in .. they could do it at first with the HUGE mark ups they made.. but its a robbing peter to pay paul effect.. and leads to were the principals and sales manager are at now which is litigation of a very serious nature.Warranties:I understand how the public likes them and how a TK company can use them for marketing purposes however many TK companies feel that these can induce folks into buying a certain product over another..

A few comments, thoughts to ponder:Not taking away from your right to deal on your own behalf, personally investing, but what is you public duty as a licensee?

As of late, I am still scouring the appraisers and public records for information on the properties in this tiny developed area.Has anyone come across a situation like this where the legal transfer of ownership has not occurred?

A public sale will take place where the Mortgagee can advise a reserve bid.  

We just finished up our launch pad education and strategic planning prior to blitzing our College Station market.

The oft-cited $10k/month goal requires a $3M net worth using publicly-traded securities in a modest balance.  

@David MarzulloThere are some good points and some bad ones, customary for public forums.A private lender is the role you will have with this borrower, he was known to you, personally.

Grounds for denial of issuance of license or for disciplinary action(A) In addition to Section 40-1-110, the commission may deny issuance of a license to an applicant or may take disciplinary action against a licensee who:(1) makes a substantial misrepresentation involving a real estate transaction;(2) makes false promises of a character likely to influence, persuade, or induce;(3) pursues a continued and flagrant course of misrepresentation or makes false and misleading promises through associated licensees or through any medium of advertising or otherwise;(4) in the practice of real estate demonstrates bad faith, dishonesty, untrustworthiness, or incompetency in a manner as to endanger the interest of the public;(5) represents or attempts to represent a real estate broker other than his broker-in-charge or property manager-in-charge without the express knowledge and written consent of the employing broker-in-charge or property manager-in-charge;(6) guarantees or authorizes and permits any associated licensee to guarantee future profits from the resale of real estate;(7) makes a dual set of contracts, written or otherwise, by stating a sales price higher than the actual sales price in an effort to obtain a larger loan from a lender or lending institution or for the purpose of misinforming a governmental agency or any other reason;(8) is convicted of violating the federal and state fair housing laws, forgery, embezzlement, breach of trust, larceny, obtaining money or property under false pretense, extortion, fraud, conspiracy to defraud, or has been convicted of a violent crime as defined in Section 16-1-60, has been convicted during the previous five years of a felony directly related to the practice of the profession, or has been convicted during the previous seven years of a felony, an essential element of which is dishonesty, reasonably related to the practice of the profession, or pleading guilty or nolo contendere to any such offense in a court of competent jurisdiction of this State, any other state, or any federal court;(9) fails to report to the department in writing by certified mail, within ten days, notice of conviction of a crime provided for in item (8);(10) fails, within a reasonable time, to account for or to remit any monies coming into his possession which belong to others;(11) pays a commission or compensation to an unlicensed individual for activities requiring a license under this chapter.