Does anyone know RE investment using Self direct 401K

[Frandy Ho]

I am looking into settin up a self direct check book IRA account and transfer existing fund in my 401K to invest in RE. My goal is to get stable rental income each month to support my living. I think its saver than stock or bond market in long term. I have 2 questions and wonder if anyone has this type of experience can answer. (1) If I were to invest a property worth 200,000 and earn a net income after deducted all expenses is 14400/yr, I have to take 5% distribution. Is the distribution base on 200000 or 14400? (2) what if I sell the property in a few years, how to figure out the new distribution?