Everything I have heard is that as long as you disclose you are licensed there is not an issue being an investor .

@Paul KitThe issue it appears you are not grasping is that all activities of your IRA must be entirely at arm's length and may not intersect with your personal finances in any way.

I'd just add that you should  include in your operating agreement a very detailed explanation of how issues are resolved, voting power for all members and who is at the helm of the organization (i'd also spell out roles and responsibilities for each member in a very explicit manner)

Side note, as a listing agent I never wanted the buyers inspection report.....it could lead to possible non disclosure issues.

In a way I had a gut feeling that's what the issues I'd have were, you're just way better at explaining it!

Not speaking as an attorney (which I'm not, nor want to be) I personally would certify-return receipt mail his money back,  immediately change the locks, and issue a cancellation of lease.If this person pulls this kind of stuff at the get-go, you believe he will change his ways after move in?  

I use Safeco on my other properties and haven't had an issue so far.

The owner of the property had some janky title issues going on where someone else's name was on the title yet had no ownership of the home.

Owner of a property in each city and now focused on investment opportunities with upside (renovations, change of use, working thru legal issues, etc.). 

The only exception is issues that occur within 30 days of move in, but after 30 days, the tenant owns the problem.