It is the investor who reduces the cash flow on a property by leveraging debt against the property.

All we were responsible for was tax and insurance, which is about $100 per month combined, so we were looking at a net income of $400 per month.

Hes also into real estate and had him look over my portfolio and numbers and debt stuff.

Owner is deceased, has reverse mortgage on the property, his 3 children are middle aged and none of them probated his estate because none of them wanted to have anything to do with the property because of its condition and because of the debt on it.

I'd like to keep this simple and official debts divided.

Which I don't want to do because then I lose all the flexibility I love about the HELOC to begin with.On the subject of the large minimum monthly payment, it screwed up my debt-to-income ratio and that was one of the factors that blocked me from getting the refi I'd had planned. 

Any debt financing will need to be non-recourse and the use of debt-financing will expose the IRA to nominal taxation on Unrelated Debt-Financed Income (UDFI).While the leverage is not as high as what you could achieve personally, the BRRR method of investing can be a great way to accelerate the growth of your IRA. 

I am wanting to keep as rentals or wrap and sell with OF and both would work for that scenario and cash flow a minimum of $300/mo after expenses and debt service. 

You can still charge a fee for this, because you then have go over there to put the key back and change the combination.

Without more information I think you need to do some more research on the fund, what their investing in, what type of debt/leverage their using, their timeframe, their different underwriting assumptions, etc.