Any ideas on investing funds sitting in a solo 401k?!

[Michael A.]

Hey All,

I am considering strategies to invest funds that are currently in a Solo 401k. Lets call it 25K for arguments sake. The funds are not quite enough to buy property outright in my market but they are enough for a moderate down payment on a 1-4 unit buy and hold property and possibly a small commercial unit but not quite enough to cover lender reserve requirements etc.

My goals are to:

Generate returns north of 20% annually

Double the investment within 3-5 years

Eventually deploy the capital to long term buy and hold multifamily units

Protect returns in a favorable tax environment

Some of my current ideas:

-wait and contribute more capital to purchase outright

-utilize non recourse lenders to leverage into a small residential multifamily

-buy a small sf in a lower cost market and resale with a markup using seller financing to create an interest bearing note that i can hold or sell to notebuyers

-invest as a lender/crowdfund investing to generate passive returns

I like the idea of protecting returns but now feel a bit hamstrung because of higher ltvs and wanting to keep these funds separate from my operating entity. Does any one have any other ideas or experiences/suggestions (conceptual or proven) on how to best grow this capital?

Any and all answers appreciated!