Because of this my insurance policy cancelled the my plan and after working with multiple insurance brokers I cannot find anyone willing to insure my property.

I worked on it around work and family obligations so you could finish a lot quicker if you chose to. 

In almost every community, you can also look the tax rolls up online and get the EXACT number- Insurance - Galveston is in a hurricane zone.   

I checked with insurance, checked with my loan note, and checked with the county zoning.

So, if your Self Directed IRA is 75% partner with another entity, then it must collect 75% of the profit (rental income, sold gains, etc), it must also contribute 75% of the expenses (rehab, insurance, taxes, etc).I am not sure about loaning to a partner. 

My wife and make a decent living, but have student loans still, other obligations and a small child with one on the way paying day care, etc.

Mortgage with tax & insurance is $1,660.

Regarding your question: The court in the past have looked at these intents:  The agreement between the parties and their conduct in executing its terms; The contributions, if any, that each party makes to the venture;Control over income and capital and the right of each party to make withdrawals;Whether the parties are co-proprietors who share in net profits and have an obligation to share losses;Whether business was conducted in the joint names of the parties;Whether the parties held themselves out as joint venturers; andWhether separate books of account were maintained for the venture.In more complicated cases, the court has ruled what you are expecting, but there were some significant differences. 

.$450/mo paymentAnnual Income: $14,400Taxes (at max) is $2,000/yr.....Insurance is $800/yr.....$1,200/yr reserve for repairsNet income: $5,000/yrShould I go for it?

The COC ROI will be 14.88% and the monthly cash flow will be $535.95 after subtracting for vacancies, repairs, cap ex, taxes, insurance and P & I.