They would have no guarantee that you would use the money to buy a property and no collateral (i.e. no way to put a lien on the property) if they were to give you the cash directly.Cash means cash in your bank account.

Unless you can find a means to get a guaranteed higher rate of return of your money, I think that is a wise move. 

With the SDIRA, or Solo401k, there are restrictions of it being "non-recourse" meaning no personal guarantee from you, which make them hard to find through traditional lenders.

Then you can put it in LLC to protect you against tenant lawsuits, and the seller's loan is protected because you are personally guaranteeing it.One more tip.

You're going to have to put personal guarantee on the properties anyway even if they are in an LLC. 

I give new tenants a guarantee of rent rate to stay the same for 6 months and if they terminate prior to 6 months I charge a $250.00 redecorating fee off their security deposit. and  it has worked I seldom have had anyone stay less than a year and average is 2-4 years...

Lots of the places will guarantee the tenant for a year.Hope this helps!

Be aware that the VA may choose not to OK your loan guarantee if it's too much of a fixer.

Not that it matters because I can almost guarantee you that a cash out refinance appraisal isn't going to come in at exactly where you think it will, in any case.

I've helped a lot of Salt Lake City owners find companies offering guaranteed income, so I'd be happy to see if I can help!