Rates will come down and homes will hit the market but you will continue to have the problem that most people cannot afford a home and the numbers do not work for investment purposes.Mortgage rates are simply reflecting a price of front running the market.Those gullible will fall for the bait.

Simply put, just buy the RE in the name of the Solo 401k.I am not a tax atty. or giving tax advice.

I forget the number right now but if you are within I think 5 days from sale date the lender isn't obligated to reinstate, but still may.You may be able to delay the foreclosure by simply asking for more time, you are now the property owner and have some sway.A couple observations:You don't have title insurance as no title company will insure a trustee's deed in CA, so that won't help you.You won the auction based on your commitment to occupy the property (SB1079), so this is not a quick flip.To buy time and delay foreclosure you can file a stripped down bankruptcy.You can't stop payment on the 86k wining bid since you paid cash at the trustee sale.Generally trustee sale buyers don't have a real good feeling for the property condition, unless you do for some reason, so this is a wild card. 

Many of my clients have found that rather than investing in one vacation rental in one place they have more fun simply buying in the LTR sector. 

Simply put, there are a lot more co-hosts/managers like myself and yourself who got started self-managing their own properties around covid and are now afraid or unwilling to buy new properties at current prices/rates, but want to use their knowledge/experience to keep increasing income in the space. 

Despite what anyone else may say, unfortunately, $5k is simply not enough to acquire an investment property.

Would simply owning these properties through an LLC (with an associated business account) be enough to benefit from this? 

At the end of the day, everyones ultimate goal is to become the bank and simply lend out a pile of money and collect a return rather than having to do the grunt work of making these assets perform.

And if it did happen, the lender will simply fix the "botched paperwork" and proceed, A lawsuit will cost your friend $25,000 plus paying the arrears on the loan with no guarantee of success.

The easy answer is simply a 240volt plug on the wall.