Doing so on a small amount of earnings would be much more advantageous than on a larger initial sum they may hold in a retirement plan today.Rather than disparage the use of a self-directed retirement plan as you do, I would take away from your post this: Solid strategies in real estate investing such as you have outlined are a fantastic way to create wealth.

I’m researching which makes more sense for me: Real Estate Investing (House Hacking and Investing in Multi-Family Rental Properties) or Starting an Online Business (Millionaire Fastlane style: search for a problem to solve and start a company around that).This video called How to Research Any Topic outlines a simple approach to help make informed decisions: https://www.youtube.com/watch?

Create a Word doc that outlines all this specifically.As far as expectations, just remember they are working for you.

Yes, show the unit starting at the 30 day mark if needed (this should be outlined in your lease).

I have been working with contractors, the city, the intermediary entity for the NMTC, a small handful of banks, and a few RE agents to get all of the information compiled for the business plan and financial outlines.  

Asset protection is my bread and butter, and I do endorse the plan that @Costin I. so helpfully outlined below.

Even with the mistakes maid and outlined above, a decent return with little risk-since it wasn't a 400K property with rent upside of $1800..

My CPA took advantage of depreciation bonus on a new restaurant we opened last year to reduce my tax burden and basically the underwriters are saying it is flowing through as a loss that wipes out my W-2 income so I technically don't have enough income for the loan.I had my CPA draft a letter outlining that in fact the loss was not real, but was bonus depreciation, and that I have more than sufficient income.  

Brian did a great job outlining potential risk.

Please link articles that could help me outline the positive talking points around this option.