@T LeeThere may be a potential tax that the Solo401K has to pay if the syndication has income that is considered "UBTI"(Unrelated business taxable income)You should speak to the sponsor prior to investing to check if there are any UBTI concerns with the fund you will invest in.Rental income is normally not subject to UBTI.

**So I tend to share more ideas along those themes vs Buy/Rehab/Flip and pocket Highly TAXABLE one time income.ok pm me and Ill share my cell and I'll be glad to keep you posted on my 'classes'.  

@Scott Anderson That's the way to go to avoid taxable income. 

So my question is about my plan seeing that in a few months I’ll have 2 years of taxable rental income and be able to acquired a residential investment mortgage.

Is your $215,000 taxable gain and $25,000 tax accurate after including all the tax accounting entries? 

It is still included in your Taxable income and can easily bump you up to a higher tax bracket and be very expensive.

These profits would of course be taxable to you via a K1 from the entity to your personal return (a flow through entity).You personally (not your partnership entity) would be responsible for paying back your 401k loan.

Meaning - if you buy a deal there - the county assessor isn't going to jack your taxable value (and thus - year one real estate taxes) sky high post-sale like they would up here in Seattle.

You don't want to hold rentals in a C Corporation and turn rental income into corporate taxable income.

Then, when you file your taxes you can include depreciation on the property as an expense to further reduce any taxable income you might have.