We have a HELOC and cashing out a 401(k) for the down payment.

@Chris K.

@Reid ShafenbergThere is no going back and un-doing that move.I would assume based on your description that the $5,000 distribution was reported by the 401(k) administrator as a taxable distribution to you. 

As such, her Solo 401(k) could not lend money to your project.What you could do with a Solo 401(k) is that your wife could personally borrow from her plan. 

@Nick CausaThe key principal of a self-directed IRA or 401(k) is a means to diversify your tax-sheltered retirement savings. 

@Jim K.

I met with a FSBO today who bought a property for 90 k a year ago that needs 80 k in rehab, but most of the comps are at 150k.

It can accept contributions and rollovers from other plans in the same fashion as any other IRA, either during the initial setup or in the future.The one thing I would be sure to check on is whether your new 401(k) would let you roll out any of the funds you are rolling in. 

Originally posted by @Jim K.

I have CDN 65 k sitting in a bank account and want to buy a property to live in eventually but want to rent it out initially.