Didn't think to try doing a solo 401K but I doubt I would qualify, having just recently returned to W2 indentured servitude (but I will escape again!).

I want to go find some decent working class property, stuff that would probably work alright as rental property, and I want to buy it with either owner carry or with the existing financing still in place (also commonly called subject to).

Here's our deal for discussion purposes... house for sale for $135K, needs a little work, probably will rent for about $1400. ARV is about 160k. I offer them $130K with 13K down and they leave the existing loan in place, and create a second for whatever the difference is. Local RE attorney (whom I met here on BP) does the paperwork, and we close at a local title company.

I get my handyman buddy and we $5K-10K in renovations on it. Let's say $7k only. Now I have an even $20K invested out of my SD IRA.

At this point I could maybe rent it, or I could sell it on a wrap. We want to sell it on a wrap, for our discussion.

So I got to the local RMLO here in Texas, they process my buyer, and do it all up right for me. For our discussion here, we manage to sell it on a wrap for $160K, and I get 10% down. The proceeds go straight back into my SD IRA.

So now I have most of my money back, just need to recover that other $4K of investment.

I'm making payments to the seller on $117 at 6% or whatever (I saw this in a recent real life case), for let's say 20 years. And I am getting payments from my new OF buyer on $144k for $30 years at 9.9%. Don't have access to excel at the moment, so not sure what the spread is on dollars -- I'll have to edit this when I get back home.

We don't need to talk about the due on sale clause, this has been discussed in many threads and other places.

I get that I will have UBIT on the leveraged portion here. Somewhere in another thread I saw some calculation for that, and I saved it (I sure love BP). But that UBIT is the crux of my question here.

1. I could sell the note and just cash everybody out. Then it is like doing a flip. I get that. However, could I sell a partial note on this, pay off the underling debt, and keep whatever miserly stream of cash is left? The note buyer gets first lien position now, having taken out the seller's second and the existing bank financing. Would that still be considered leveraged for the purposes of UBIT?

2. Originally I thought heck, I can keep the note, and go find some PM lender to make me a loan (or rather my IRA account FBO me) for the underlying debt. That solves the due on sales clause, but I am guessing it doesn't solve the leverage problem for the UBIT. All I have done is replaced one more of debt with another, correct?

Anything else I might consider here?

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SD IRA and buying subject to existing

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