Eventually the distributions will exhaust the cash, then it gets even more complicated, especially if I'm unable to put rental income back into the IRA. 

I currently own and operate a small distribution company that sells hand tools.

With 7500 new troops coming into Whiteman, the city council turning over and the new Dollar Tree distribution center it seems to be doing well there.

The only option would be to take taxable distributions from the IRA.IRS rules prohibit any self-dealing or personal benefit from the IRA.

My advice to you is simple:decide if you want a totally passive investment, where a project manger actually finds, rehabs, rents and distributes your cash flow back to you....or do you plan to be hands on?

Lies to Watch Out ForThe brokerages have developed scripted techniques and tactics to build trust with owners.

I have purchased a few smaller multi-family places with the Solo 401k but use the cash distributions from those properties to go right back into the account. 

To be successful at the technique you have to be pretty shrewed and willing to push the Caveat Emptor factor on your buyers, or you have to be very, very, very good at finding REAL legit good deals (this is not super common). 

Don't let your scepticism interfere with your opportunity to learn new methods, techniques, and strategies.

I can appreciate the complexity of distributing bulk expenses across many properties.