I appreciate everything I have read here about buying investment real estate with a Solo 401K, but am still a little confused about a couple things that I haven't read about.

First, I own a Sole Proprietorshi...

The IRS actually issued Revenue Procedure 2005-14, which clearly allows a taxpayer to convert their primary residence into rental or investment property and then take advantage of both the 121 Exclusion ($500,000 tax free exclusion) and the 1031 Exchange upon the sale.The taxpayer has to make sure that they sell (and close) on the property no later than the end of the third year after they move out of the property and convert into rental or investment use in order to qualify for both the 121 Exclusion and the 1031 Exchange.

Not only can they include verbiage to protect your purchase transaction, they can also verify that proper procedures have been followed, proper Notices given, and letters testamentary have indeed been issued; which means that those with standing to object have been given their opportunity to do so, and either agreed to the sale, or their objections have been quashed.I am perhaps more sensitive to the importance of using counsel whenever dealing with probate purchases because I lost significant capital on a $2.5 million purchase literally at closing when one of the previously unnamed beneficiaries served an injunction to stop the sale.

Then using the correct rental contract especially for college students, and knowing the correct procedure to evict renters is needed to take some of the risk out of your investment.

We proceeded with abandonment procedures to securely terminate the tenancy.

I'm not exactly sure about the procedure or the costs, but I'm sure it'll be worth it. :)Thoughts?

I agree with Paul that it's actually standard operating procedure to do the inspection after the offer has been accepted.

@Peter Nguyen I heard it from my partner researching this deal and now, I dig through Information and bidding kit they provided on hud portal and in the kit they explained this as part of post purchase procedure. 

I would highly recommend everyone check their local procedures and consider offering this service to your tenants.If anyone in Toledo needs labor for spring cleaning or a  trash out help throw me a PM, happy to assist.I'd love to know if other municipalities have unlimited trash pickup...I can't believe that Toledo has  some unique perk. :)

This stops the issue from escalating and now that I've done what I said I'd do it's a good relationship.The procedure for the City seems to be:A Violation letter with a specific time to resolve (24 hrs, 72 hrs, etc)A second letter which is a $75 Fine, Notice of Liability TMC 1726A third letter which is a $250 FineA court summons forcing you to hire a lawyer, attend court at least twice, resolve the issue and then pay court fees and fines.I presume if you don't attend the summons then they put a warrant out and place the fines and fees against your property meaning it will be seized if not resolved.At the City's discretion they will themselves resolve a situation they deem urgent...you will receive a large bill in the mail for their time and efforts, something like $300 an hour for four hours time plus materials and disposal.I have properties in a self directed IRA, which means the owner on file is the administrating firm...there is a two week delay between a notice being issued (yes a 72 hour notice) and my getting it.