You mentioned "FDIC risks", bank ratings are classified, only regulators and a hand full of bankers really know what issues a bank may have, the Board of Directors, President, maybe the Executive Sr, Vice President, the compliance officer/folks and key department heads. 

If you have any legal questions as to the Indianapolis market and/or laws, rules, regulation in the State of Indiana, please let me know.

So you can end up with tenants that are not vetted, and have not been approved, and probably have not signed your lease or rules and regulations.

., and then look up that district's zoning regulations on Municode.

The arrangement you're talking about is called a periodic tenancy, and the regulations for terminating them can vary from state to state.

I would first look at the area and see if there are local regulations (unrelated people in a house, drinking or party related noise ordinances, laws on registering rentals). 

There are no regulations or anyone checking to see if the reported cap rates are accurate. 

@Kathleen Wilcox be really cautious about offering a 5 year lease with option, Due on Sale Clause IssuesHere are the exemptionsd) Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

Any repairs/improvements made on the properties must also be paid by the IRA owner, and the work performed by non-disqualified parties.Buying/holding property for investment purposes or buying, fixing and selling a very limited number of properties per year will not generally trigger UBIT (as long as no financing is used by the IRA to purchase the properties), but it's important to always have a knowledgeable CPA and/or attorney review your proposed investment strategy to make sure you're not inadvertently running afoul of any IRS regulations.

There are new regulations about generally soliciting for accredited investors under 506(c).