There are other risk management things such as making their insurance primary & non-contributory, waiver of subrogation, etc. 

@Joseph Abbott that might be tough to get a traditional loan with a credit score of   534.

Well, we aren't really interested in a traditional duplex.

The property is priced at 132500 has four units and im going with an FHA Primary residence on it living in APT 4 with 3.5% down.

I'll agree with @Omar Khan about the IRA, but traditional vs Roth comes down to a tax rate question. 

Hey guys,  Im thinking of shifting my traditional checking/saving account and mortgage to a manulife one account which my broker has suggested so I can be ready to pounce on a house and properly conduct the yellow letter direct marketing offering cash when they want it. 

I currently have a rental that used to be a primary residence.

In that case, if @James DuBois wanted to go the route I suggested, do you think the bank would still say no if his parents were also listed as co-signers on the primary mortgage?

Secondly, like many I thought the Colorado market was a little too hot and certainly, in Denver and surrounding areas, it is a little too steep for traditional solo investing.  

I purchase my 2nd primary residence and there was about 4yrs of back dues, granted they were only a fraction of what you are dealing with but they just forgave the balance on mine.