Depending on your risk level you can simply use credit cards/401k as cash emergency reserves.Lastly, adjust reserves accordingly based on future expected CapEx needs

I shouldn't short-sell all credit repair companies simply because I had a bad experience.

Account Closed  most of the debate is whether your selling RE without a license and as you state getting a license solves those issues.I would also add to your list to simply check in with the state regulatory agency that over see's real estate brokerage activities  and see what the law actually says..

It is simply a means to diversify your IRA, not a way that you can personally access the funds for your own purposes.Do some reading here on BP and you will identify a few providers of both service types that participate here regularly.  

Can I get in trouble for simply trying to work with the homeowner in this position?

I've yet to complete a sub 2 deal, and your successful attempt inspires me!

What might be some ways I can protect myself so I don't pay a high price for simply investing at the wrong time?

My house in the same county is worth about $290k with $1100 in annual property taxes.I have passed on a number of properties because of the tax implication after converting them to rental properties, particularly in Columbia, SC where dealing with City & county taxes both at the non-homestead higher tax rate simply murders cash flow.

I mis-spoke, I was simply try to say that an investor can borrow from their own sources to get the benefits of leverage without having to cosign a loan for a larger amount that will negatively impact their net worth.

@Jeevs Pothen      Simply search the Bigger Pockets website.