@Brent Tatum assuming that your Solo 401k plan is self-directed (not restricted to stocks and mutual funds as investments), then you can buy land, but only as the investment.

@Andrew Kniffin agreed with your statement of having an onsite manager being beneficial for 80 unit.  

This way the home is covered by insurance but you have to pay two policies in this method; but it can be beneficial if there is equity in the acquisition.

I hoped with my simple example to demonstrate why depreciation on a property is beneficial on a cashflow basis - though you certainly do pay later in Real Estate.  

Of course, I will explain how this is mutually beneficial as they get a short lease as a trial to see if they like the property.

Does anyone know if this is beneficial or will the tax dogs come attacking regardless?

Trying to get an extra few percentage points of return is either going to lock up your money (long term loan, CD or similar) or open you up to a real risk of losing your principle (stock market or mutual funds).

If you do not know, it might be beneficial for you to ask the investors you work with why they are passing.  

Also I would advise anyone looking at upgrading to attend one of Brandon's BiggerPockets Webinars at http://www.biggerpockets.com/webinar it could be very beneficial to hear his pitch at the end.

We were both unable to sell our primary residence prior to getting married and moving to Dallas due to underwater mortgages, but it has worked out well so far.My goals:To learn how to find and acquire 2-4 unit properties that are turnkey or have high ARVs to justify the purchase.To find what healthcare REITs, if any are present in Dallas and if this is a good marketTo find mentors who can help me accomplish this as efficiently as possible.What I offer:A willingness to perform on the job training of completing due diligence and market analysis of potential dealsA potential partner in mutually beneficial real estate endeavors.Expertise in the healthcare field and assessing profitability of outpatient medical facilities.Intelligent professional with track record of success and strong communication skills.I look forward to getting to know the community!