I work with wholesalers on a regular basis, and while most of them are ultimately getting a deal under contract and then selling the contract, there are some that do it different or more "creatively". 

CAP rates are regularly between 3-4%. 

There are some regular posters here whom I admire greatly.

The long term strategy (5-10 years) will be to tear down this home and build an identical structure to our existing 8-plex, making a 16 unit complex.

So if you take one out to buy a rental, then the deal falls through you still have to make regular monthly payments out of pocket or pay the loan off in full.

A tenant of mine has an out-of-town “friend” that regularly visits him.

A tenant of mine has an out-of-town “friend” that regularly visits him.

Costs about 8% to sell a house the regular route. 10% by the time the inspection report and negotiations conclude.If it's been at least 366 days, taxes shouldn't be a huge factor. 

Your regular homeowners policy doesn't cover it and a normal landlord policy doesn't cover it either so I have to make these guys happy.       

There are a few Solo 401k providers here on BP that regularly respond to questions such as your own.