roth 401k conversion

[Russ Trimboli]

i have money in my 401k that i am thinking about investing in a rental property.

im also considering at some point turning it into a roth

i have 40k in the account. i have my eye on a 2 family for 49k that brings in 1400 mo

i think i know the answer to my own question but i would appreciate hearing from someone smarter than i the best way too approach this

if i buy the house now and then convert the property will the tax basis be on the market value or income of the property and will it factor in future earnings or fix the conversion on actual money in the account ?

im thinking the easiest way of solving this is converting first and then just buying it as a roth.

is there a better strategy here ? 

my first thought is to try to purchase with seller financing ( havent seen it or offered yet )

put 10k down, 400 month , and save all the rents in the account, with a 2 year purchase term ill have enough money in the account to purchase outright.

if there is an expenditure needed ill have ample money in the account to address it.

any suggestions ?