I'm looking at putting money into it and recommending friends to put money into it so any advice is appreciated.

@Brian Berry - How does this work @ Tax time?

I am considering two options for purchasing a A+++ SFR cash, Option 1 to place in a self directed IRA and let the IRA own the property and Option 2 is to buy in cash upfront and pay the taxes owed.I am 62 years old and have another five to seven years prior to retirement and so I am trying to set up my portfolio for income generation by that time.

Aloha Julian, Just to add onto what everyone has said, 1-4 unit deals (residential) are typically underwritten differently from 5+ unit deals (commercial). 1-4 units are easier to close and you get more money for them because of how DSCR is calculated:- Residential (1-4 units) DSCR = Gross Rents/Mortgage Payment- Commercial (5+ units) DSCR = Net Operating Income/Mortgage PaymentIt's important to note that in both cases above, there are exceptions.

Let’s also look at income, not just total wealth, since many folks, especially hourly workers, in the bottom 50 unfortunately, really can’t/don’t save much money or own income producing assets.

I deposit my paychecks there and for all the time the money would usually sit idle until the bills are paid, the heloc interest calculates daily, so it would be lowered by my deposited income.

However, if it needs that much work you are probably better off going with a hard money loan and then doing a rate & term refi once rehabbed.

Great investment getting ahead of the college housing expenses and putting the equivalent rent money to work..If the property is generating income it can be classified as a 'second home.'

If you cash out equity in a property, you are "borrowing" that money from the lender.

You could have $1,000,000 between you and your dad but money is only one piece of REI.