Are you paying cash for the property?  

You may find that using the IRA owned LLC is easier when making a real estate purchase, especially when paying bills for the property. 

The problem is that it makes it more difficult for tenants to pay, and higher-income tenants will push back because of the inconvenience and hassle.

The 70% rule is a common guideline the rule of thumb is to never pay more than 70% of the after-repair value minus repair costs

I have a stable job that pays fairly well for my age I guess, but I am not yet a $100,000 earner. 

@Tom Server I am newbie to Section 8 too, but they are paying me a little higher than market rent because my house is new and has all new appliances.

Have the Seller pay it.

@Basit SiddiqiAgree for example would you rather have 13% net but deal levered 75% or a deal no levered at 8% net.On a 100k investment I would take the 8% deal every day as I will gladly pay an extra $5,000 to reduce my risk substantially since in option 1 the deal can go to zero in option 2 realistically it would be really poor management if it lost more than 10-15% of your capital.

At the end of the year, he would file a tax return and get the withholding back from the IRS after paying capital gains on the 15% withheld amount.

And he said I would pay the mortgage directly.