Retirement rollover to Solo 401K to invest in multifamily

[Jon Saddler]

Hi All! Interested in the community's thoughts on one possible game plan for investing in my first multifamily:

I currently own two single family rentals, and my goal is to grow my portfolio to eventually replace my income with passive income. I believe multifamily investing is a better way to scale efficiently as opposed to continuing to purchase individual single family deals.

I have around $140K in my government TSP (I'm no longer a government employee and have a separate retirement account now). What advice (and pitfalls) do you have about rolling this over into a Solo 401K to then partner with more experienced multifamily investors to gain experience in multifamily in preparation for doing a deal of my own?

1) Goal would be to roll this over in the next month, and find a multifamily deal before the end of 2022. I'd like to then potentially do a subsequent multifamily deal sometime in 2023 using the lessons learned in this experience and other funding sources.

2) I do not currently have an LLC created for my current single family properties, and presume this would be a prerequisite to anything else before I can create the Solo 401K

3) Does anyone have any experience doing this or something similar? Any issues partnering with others from a Solo 401K?

I appreciate any thoughts you have!

-Jon