It's a risk that owners are willing to take to move the rent roll forward. 

I did a 1031 exchange and was able to find a much much nicer single family townhome in a different area that I rolled the funds into.

I should also mention his main reason to want to do a SOLO401K instead of a SDIRA is that he ALREADY had 500K + in a Traditional IRA that he rolled over, and THEN leveraged. 

Are you asking if you can roll the upfront pmi into the loan?

Ultimately I want to buy enough houses that i could choose which ones I want to flip and which ones I want to hold for long term passive income.The way i figure it, once I buy my first property it'll be smooth sailing from there and the money will just start rolling in........right?

I'm a 1099 employee, I have a LLC can't get approved for a loan right now, was looking more for a hard money lender type just to get the ball up and rolling I'm staying near Glens falls right now  but I do most of my work in MA and found a lot of foreclosures that need work and I have a contractor over there.I just join this today so I'll do some more research.Thanks for the feedback 

The adviser helping us said that I could roll my husband's ira into the account as long as he worked for me... as a 1099 contractor.  

It took me 10 minutes from walking onto the grass of the building to having an agreed offer with the seller on site.Today, I stand at 14 buildings, and 20 doors, with a rolling 93% occupancy rate.

Hit me up if you ever make it out to San Diego and when I roll through Atlanta I'll do the same. 

I found these two books to be helpful....How to Read a Rent Roll - John WilhoitThe Due Diligence Handbook for Commercial Real Estate - Brian Hennessey