Usually, buying an owner-occupied house is not an investment decision unless you plan to employ some kind of strategy like flip, BRRR, house hack... maybe it'll help if you run some numbers of different scenarios and compare.

I have no money saved except some cash from a previous employers IRA.

I have chosen to go this route because I'm self employed and getting a conventional mortgage with a lending institution is not an option at this point.

I recently got let go by my former employer due to a family medical emergency where I had no more FMLA left.

If you sent me a 15-20 page PDF with your personal income statement, employment status, education, skills, the property or properties you are considering, your calculations and projections, your rehab estimates from contractors, local comps, appraisals, estimated ARV, what you plan to list it for, who your realtor or broker is, your 5 year plan, etc.

There has to be some vetting for this.If I was told HEY your tax work WON'T be subject to Self employment taxes AND won't be subject to passive loss limits.

Would you employ a different strategy? 

@Eric ChaseYour self-directed IRA should obtain an EIN on the IRS website:https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-onlineYour SSN has nothing to do with your business when you're doing it out of a retirement account

Should I not worry about it as the mother has great references/credit/employment?

Just got an email about the meetup and thought about your post.Details* First time homebuyer grants - single family or duplex* Fix N Flip Loans for less than hard money* Qualify for a mortgage the easy way - even self employed* Get a construction loan if repairs are needed* BUY A SINGLE FAMILY OR DUPLEX WITH ONLY $1000Presented by Keith Lis of Gateway Loans.