Everything must be titled under her IRA and she cannot receive any benefits, such as rent. All expenses must be paid from the IRA as well.
As an investment, she could also pool her money with other IRA investors. There are companies and flippers that specialize in this sort of thing and provide a good rate of return.
If it was for an investment she could structure it as a self-directed IRA which would be investing in real estate instead of securities. She'd need to do the research to find an out how sheâ€™d make it work but unless things have changed in IRA law in the last few years it can be done. There are a few companies that run the IRA for clients investing in real estate. One problem I ran into was borrowing.
The other method she could use is to borrow from her IRA and then pay it back with interest.