If you hold/operate properties out of state, you will be forced into employees, but in-state, needs to consider Illinois labor laws. 

Originally posted by @Joe Fairless:@Dwayne Jonesthat tiny home project for the homeless is great - thanks for sharing.  

@David WillisYou can deduct all business expenses that are not specifically connected to this house.Non-deductible: labor and materials, permits, plans, utilities, property taxes, builder's risk insurance, etc.Deductible: LLC formation, driving, office expenses, marketing, education, cell phone use, etc.

Some prohibited transactions are things like:Investing your IRA funds into a business you or any prohibited person ownsYou or any prohibited person preforming any manual labor to a property your IRA owns (paint the walls, mow the lawn etc)You or any prohibited person living or even staying overnight at a property your IRA ownsLending funds to a prohibited person or entity.Who is prohibited?

@Joe Splitrock If I ended up evicting it would actually be in my favor, this property was a value add deal, and this unit is freshly renovated - the guy moved in less than 3 months ago. 

Personally I do not use an accountant, so I don't suggest just running to the 1st Joe and handing it over.  

@Joe Villeneuve  you flip flopped it.. its 80 to him and 20 to partner.

A larger company that only rehabs these has staff for labor on payroll.

As Joe and David said above, this is very possible using portfolio lenders.

There are others that have compiled and done work in this area, using federal data like Bureau of Labor Statistics, analyzing several dozen cities and metro areas.