Also, its important to take these economics from a region to region perspective.

I don't see how a newer investor (like yourself) can think they have a better perspective on the situation than the large guys operating there for decades.  

Whether that is an IRA served by a conventional bank or brokerage, or a self-directed IRA capable of investing in real estate does not matter one bit from a tax or compliance perspective.  

I mean we could just use 75% of gross - PITIA for now but when you get your tax returns in on an application you might get a completely different answer.It looks like your DTI will be low if you file both properties in a way that will net positive income from a lending point of view.You'll have the ability to qualify for about 230k in loan approx assuming all rental properties "net zero," income from a qualification perspective (most conservative calculation).

Also see @Chris Clothier's BP Post on 20 Questions to Ask Before Hiring Property ManagementA few comments/questions (perhaps from a PM perspective):Most (all?)

The best way to invest in real estate from your perspective is a hands-off approach.

This is #1 for this model in Indy. if it goes well I can see a lot of deals due to good wholesaler network and my team on the ground from a rehab/rent perspective.

If you a selling the property then a fresh coat of paint can go a long way.  

For a buyer or perspective buyer, maybe a little overkill.That's my $.02.

From a management perspective.