Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (Checkbook IRA) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016, the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

Hey @Elizabeth Esplin, I don't really have any info on setting up the partnership, but I would just get with a real estate attorney to get it all setup.

I have recently delved into the bigger pockets podcast podcast and I have listened to virtually every podcast, I've read the ultimate begginers guide and I am currently working on set for life by Scott Trench.

Since I am an engineer and a math nerd, I like to understand the rules, do the math first and then check that Turbo Tax is doing what I think it should be doing.We need to get @Mark Mattison going on setting our next meet-up.Cheers, Buddy

However, my sights are set on setting the systems up so my SFR business runs without me working in it, and I will focus most of my time on capital raising and MF deals! 

She said that she drives a 1960s muscle car, she likes the classics!"

.-10% down-Monthly mortgage: $1,699 -planning on setting a budget of about 20-30k for rehab put into it over the span of 6mo to a year-after rehab, home only rents out for $1,500 (less desirable area/2bed1b/)Now I’m -$199 monthly besides the equity I’m getting.Am I just looking at this all wrong?

@Jack Reed Durand Disclaimer: I am working on setting up for my first commercial purchase later this year and only have book knowledge.With that said, have you spoken with a lender or read any books?

One of our partners is claiming that this is their way of muscling us into funding some of their remodel; and I tend to agree. 

Im the researcher and financial/credit power and he is the muscle, talker and rehab expert in our marriage.