You'll likely want to evaluate the investment with UDFI tax figured in.The Solo 401k trust would make the payments to the seller/lender and would also pay for any investment-related expenses.

And since the S-Corp’s profits pass through to you, you’d still pay personal income tax on the rental income.

@Sean Overcrest Transferring the property to an LLC may help avoid property tax reassessment under California’s Proposition 13, but it comes with risks.

I let both of those properties just go for tax's I tired of the BS..

Since the seller is behind $20K+, you’d need to clear that debt first before proceeding with the assumption.2.

I frequently see where one party is awarded the property and debt and is mandated to sell or refinance it within a certain timeframe to have the other party removed from the note/mortgage.

I know the tax hit isn’t ideal, but I’m wondering if the long-term cash flow benefits outweigh the opportunity cost.

Once you convert the former investment property to your primary residence you will then start to convert a proration of the gain from tax-deferred to tax free (according to the number of years it was rented/lived in). 

Your plan sounds feasible, but there are a few things to keep in mind:DSCR Loan Flexibility – DSCR (Debt Service Coverage Ratio) loans are designed for investors, meaning there typically aren’t occupancy restrictions like conventional loans have.

Intangible assets like goodwill or tangible personal property (e.g., equipment) are excluded from 1031 treatment and are taxed separately—goodwill is typically taxed as a capital gain, while equipment may be subject to depreciation recapture taxed as ordinary income.To minimize taxes on the sale of the business, consider strategies such as Opportunity Zone investments, which defer gains until 2026 if proceeds are reinvested in a Qualified Opportunity Fund (QOF), or structuring the sale as an installment agreement to spread taxable income over multiple years.