First of all, most flips don't qualify for cap gains.  

Congratulation on your decision to "step out", after being in conventional real estate for so long, it is a big decision to want to be more productive, earn more, and build a portfolio of profitable properties as a real estate investor.It is difficult however for agents/brokers to change hats, to forget the old ways of doing the conventional real estate business and to get educated on the creative ways to control and roll real estate.I commend your decision to do so.One Broker to another, if you need some suggestions, just give me a call.Good luck.

Capping your returns at 12% seems a little odd to me at the outset.

There are tons of threads on this very subject.3) As one of the other posters mentioned it may be difficult already to sell to a fannie or freddie financed buyer.  

3) Is there a cap to what we can set this interest rate to be (I've heard that you can't exceed whatever cap users laws would allow).

There is no cap that I am aware of regarding profit in a SDIRA deal, but if the SDIRA borrowed funds there may be taxation issues... that may be where the counsel's comments came from?

Keneeth what kind of cap rates do you tend to get in the Houston area? 

Since this house feels like a "starter home" for our area, convincing my wife to do this long term could be difficult.  

Egress.Fireplaces are fine but they are decorative in his type of multifamily, cap the chimneys either just to keep critters out or to close the fireplace use off.

You might look at Upstate CREIA for money sources.I personally think the price is high; I would base my purchase price off the lots paying no more than ~$15,000 p/lot and/or on lot rent only (~$200 x 6# x .70% OpExp / 10 CAP).