No luck so far with non-recourse loan, need advice re options

[Beatrice Borges]

A couple months ago I moved 76k from a traditional IRA to a SDIRA. I now have a pending contract on a brick 2-flat in Chicago ($138k), but am having trouble getting a non-recourse loan. I was rejected by one because the building is pre-1940 (it was built 1878!), even though it has been completely gutted and rehabbed. All good investment opportunities in Chicago that I looked at nice solid brick or graystones that were built around 1900. I was rejected by another due to the crime rate, which I think is a broad generalization of the area. Other non-recourse lenders don't lend in Illinois.

One possibility would be that my husband could roll over his 401K from work for the full amount. His employer allows him to do that with the amount he contributed himself, which would cover the purchase price. I'm hearing that a Solo401k might be a better option than SDIRA? Is that because of the UDFI taxes, and ability to borrow from it? Are there other reasons?

We would prefer to get a mortgage to stretch our dollars further, but may not be able to make that happen.

Any other suggestions?

Bea