Another rule of thumb is to add 5 or 10 k per bedroom.

Can he/should he simply rollover the SDIRA to a 401(k) so that he can add funds?

Just for giggles, maybe he started by wholesaling and made enough to buy his first place that way.So he wholesaled maybe 10 properties netted himself maybe 50 K, used that 50 to buy his first multiple , then he added some value held it for a year , then sold it for a gain on his money of lets say 85 K, and during this time wholesaled 10 more properties giving himself 135 k.

My friend lost about 5 k. plus moving again.I have also run into problems with liens that the owners didn't know about.

So lets say you bought for 500k and sold for 800k [300k capital gain] could you then deduct 200k (2/3 of the 300 k capital gains since you lived in the 2 out of 3 units???

Thanks Aaron  Okay so they have told you at the bank that you can have a HELOC for 155 K?

@Khenkis K. wow that was a great, thank you so much, I will definitely check out the book. 

In terms of the funding options for your next deal:1) if you have IRA (Roth or Rollover) consider SDIRA.2) if you have your own business, consider solo401k. you might be able to move Rollover IRA funds into it. also, a better option than #1 above from a taxes perspective3) partner up with money partner4) look into leveraging your personal life insurance policy as a loan (if you don't have one, go get it)5) you can borrow against your 401k at work up to $50k. you pay interest and all back to yourself @Alina Trigub - You do not "borrow against" a 401(k).

@Jim K.

Originally posted by @Khenkis K.