My family owns REI Nation, and we operate in DFW, Houston, San Antonio, and 8 other cities across the Southeast.

If I directly hold rental properties under the 401k, and only use this account for operating activities, I need to be able to send out wires for property earnest money and down payments, and also provide the account number to my property manager if I need to make a contribution or if they give me monthly rental distributions.

Buy a franchise type business, place it in the space, and sell a turnkey operation with built in lease.2.

I have not had the tenant sign a new lease yet because I want to see if I should write it in the LLCs name or mine.

Or if I still want to have the 401k Invest in an LLC, I believe I can open an LLC business account, have a form that says it is a private equity investment from the 401k, and then operate the LLC to hold a rental property.Fidelity has reps that don't understand things.

In the case of a syndicate, the LLC and its operating agreement help to formalize the legal relationship between investors.

Here is a recent post of mine that addresses your questions:  Cost Segregation - The Basics (biggerpockets.com)You can perform a cost segregation anytime before you file your tax return in April, 2025. 

I am interested in some markets outside of mine.

Mine told me they would do 75% of 1 year's airbnb income.

Make sure you find a good property manager unless you are prepared for a part time job and being on call to keep the operation going.