Here is how the rule defines investment advice:A recommendation to buy, sell, hold, or exchange investments or a recommendation on how to invest assets that are rolled over, transferred, or distributed from a retirement plan or IRA.A recommendation regarding the management of retirement plan or IRA assets (e.g., investment strategies) or a recommendation regarding rollovers, transfers, or distributions from a retirement plan or IRA—including whether, in what amount, in what form, and to what destination a rollover, transfer, or distribution should be made.As defined in the final rule, a recommendation is a communication that “would be reasonably viewed as a suggestion” to take a particular course of action or to refrain from doing so.

I suppose you could argue that the mileage it takes you to drive the distribution check to the bank is deductible but come on...

So, theoretically, if you took out a $22.5k loan, once you paid it off and waited 60 days, you'd be able to take out another TSP loan up to $27.5k or 50% of your TSP balance, whichever is less.The only downside I see is potentially missing out on market returns (mitigated by earning a return through the real estate investment) and if you somehow end up leaving federal service, you owe the full balance within 90 days (pretty sure it's 90) or else any remaining balance is treated as a distribution and subject to income tax and an early withdrawal penalty. 

In my experience the PM collects rent (usually at the beginning of the month), pays vendor invoices, refills the maintenance reserve account (if there is one), pays themselves the agreed upon management fee, and then distributes the owner's proceeds.

Had I known about this technique even six months ago, I likely would've been able to convince my wife to go this route instead of moving into a house.

GREAT read if you're looking for some pitching tips and techniques for raising large amount of capital.

If he has a PPM it's a private syndication and in that case he would need to reach out to the sponsor.But as @Brian Adams indicated, if the property is not performing highly or efficiently, the sponsor may not be required to distribute payment (if there is a preferred return it will be distributed later) and instead will use those funds in other areas such as expenses and mortgage. 

The money is the LLC and you need to follow the laws on funds are deposited and distributed and need to back track all your expenditures and accounting.

*You can also pay salaries and take distributions via your s-corp to adjust the 'combined qualified business income' in the first place and also the self-employment tax. 

Additionally, I'd like to understand how funds are distributed.