Solo 401(k) for Real Estate Purchases

[TJ Sinn]

I am curious to see what everyone thinks about using a solo 401(k) to fund future deals? Right now I have one rental property and one residence. I am looking at using a solo 401(k) to invest into for tax savings - and reap the benefit to have every dollar earned go back into future deals. 

Am I able to max out my solo 401(k) even if my rental shows net $0 taxable income? I ask because when I factor in my w2 income I would be cash positive - so I am wondering if I would be able to invest into my company 401(k) still, invest into my solo 401(k) as well, and use that to fund new deals. 

[Brian Eastman]

@TJ Sinn

Rental income does not qualify to sponsor a Solo 401(k) and cannot be used to make contributions to a Solo 401(k).  Rental income is passive investment earnings, not self-employment earned income.  A chat with your CPA would be in order.