The payments will be ordinary (self-employment) income which will give the student income history (good for loan quals).

However, if you have special turnaround/value-add situations such as very low occupancy, significant rehab, unusual situations, etc. then sometimes you will need to first go through another flexible lender and then perhaps refi into a Freddie/Fannie loan. 

I am getting it under market value (that is the upside) and looking to build equity through an FHA low money down loan.

In low tax states it will be less of an issue with running into property tax deduction limits.Sometimes people buy properties like people buy nice cars and stick them in the garage.If he doesn't want to sell or rent them, move on.

Also, just because an SDIRA provider has low-priced account fees, doesn't necessarily equate to that company being the best provider for you. 

That makes managing it yourself much easier, but if you're not, some of your cost estimates are low.

This income is also subject to self employment tax (SET). 

@Roberto Gutierrez  yup half street improvements leading to nowhere .. been there hate that.Portland is in the 40 to 50k range and so are a few of the cities.. out lying cities can be as low as 15k.

Today I was told, second hand, that a person was able to buy a house from Medicaid at a really low price that Medicaid had a lien on.

At times, I have seen people pay more for a bedroom than they should just because "inventory" is low.