It can be a helpful exception to the prohibited transaction rules.It's also nice that a Solo 401k plan can allow for a married couple to participate as well as have both Roth and traditional assets all in one plan.

Hi @Erick Duran,You can speak with local banks, or you can use the 'Network' tab --> Hard Money Lenders on BiggerPockets to get started.You are correct that some places have minimums that will be prohibitive given the above purchase price, but not all.Best,Michael

@Jake Hill it’s prohibited per each state’s law.

If it doesn't state it is prohibited then she could go ahead and do it. 

At this point I would like to sell it, and my realtor is saying that it’s marketable only to investors since owners/occupiers will not be able to get a conventional mortgage (and the insurance will be prohibitive).Is that true?

At this point I would like to sell it, and my realtor is saying that it’s marketable only to investors since owners/occupiers will not be able to get a conventional mortgage (and the insurance will be prohibitive).Is that true?

The math doesn't work for long-term rentals though for the same property.After initial research, my search was severely limited by city zoning prohibiting short-term rentals in many oceanfront areas but there are still some options left.I'm looking for opinions of skilled investors here about short-term rentals with Airbnb/VRBO.

However, any lending institution can have their own rules on this and some prohibit title transfer, considering it a sale that will trigger due on sale clause.

It is also cost prohibitive to continue to maintain the property in a tax deferred vehicle.We are planning to have a single LLC own all of the properties and my question is - if we do a cash out refinancing in order to fund the taxes associated with the distribution of the investment property, will the interest be deductible?

I have considered adding electric fireplaces to them as I have no natural gas and the chimney repair expenses are prohibitive.