Converting to a Solo 401k ...maybe?

[TJ P.]

Here's the sitch-

I have a traditional 401k from a previous employer that I haven't touched since starting a new job with a new 401k. Instead of rolling it over to my new employer, I was hoping to convert it to a solo 401k and purchase notes- My new RE weapon of choice.

Here's the Q's-

1. Does the fact that I would be using it to purchase notes change rules/applicability/restrictions compared to other RE uses (mortgages, HML, etc)?

2. What would I be able/allowed to do with the cash flow generated from the notes? Does it have to stay separate or can I reinvest it into the 401k?

3. My goal is to replace my W2 income. I am well below 59.5 years old, and would like to be able to use the funds much sooner. What are my options?

4. I plan to use W2 funds as well to invest. Can these be co-mingled with anything related to the 401k?

Ideally, this is how I envisioned this playing out-

Convert the old 401K to a solo. Purchase note/s. Reinvest cash flow along with W2 contributions. Withdrawal well before age 59.5.

Tell me where I'm wrong, right, or misguided.