For those of us who look at property in pure dollars and cents period.

The fact you are providing the service of bidding is also likely a violation even if title is never in the bidding LLC.While the IRS may have trouble discovering such a sham, I sure wouldn't put my entire IRA at risk for pure convienience.

However, there are some things to consider such as capital gains taxes (cap gains are treated differently on a primary compared to a pure investment property, usually you wouldn’t pay cap gains if you’ve lived in the property for two out of the last five years, but do pay cap gains once it becomes a true rental income property and not a primary residence, but everyone’s taxes are different and I’m not an accountant so check out the tax piece on you or own as it relates to you personally), any potential upcoming expenses related to the property (HOA fees increasing, special assessment due, major capex, etc.), how you will manage it, how it fits into your overall investing goals and lifestyle goals, your experience level and desire to own rentals, etc.

Its hard to make a decision purely on they were already in place, and he helped me buy the property.

The one thing I won’t do is invest purely for cash flow.

I'm just getting started and am looking at getting my first pure investment property in the (hopefully near) future.

I went through NACA because of the interests rates.At any rate, I want to buy a second multifamily  that I'd use purely as an investment Property.

Seems to me that its pure incompetence. 

However, we haven't had a chance to buy a pure rental property due to duty station locations and short tours until this month.

Just pure speculation.