That person can lose $1,000 of it which ends up to $4,000 which gives it a 8% returnThere is the added headaches also involved when investing through a SDIRA / Solo401k because you normally need an LLC(to get check-book control).Why did I pick $100,000 as my benchmark and why I plan to switch to SDIRA / Solo 401K after $100,000.At $100,000, I plan to open up a Solo401K to use the loan feature and take out $50,000 as a loan.Solo401K(dependent on sponsor) allows for 401K Loan up to $50,000 or 50% of your loan balance, whichever is less.I would use the rest of the balance in the solo401k to invest in syndications + issue hard money loans.One reason I thought to create this post was because I see how often SDIRA / Solo401K are mentioned but how little SEP IRA is recommended.

The idea isn't to tell you what to buy, just to give you the info you need to assess the risk vs reward of what you are buying if you decide to look further into this market.Good luck out there with whichever market you choose.

As an agent I stay in my "lane"  Always refer to a professional in whichever field is necessary.

Though I am still in college, I am determined to house hack a 2-4 unit multifamily unit using the VA loan in whichever city I am stationed.  

I’d probably sell one of the two properties, whichever one you think is a “worse” Investment or if there’s one you think you might move back to at somepoint keep that one, yes interest is deductible but that’s “only” off of your marginal tax rate with cash out re-fi’s on non-owner occupiped properties into the the double digits I would say even with the tax deduction it’s probably “bad debt” and I’d rather have the cash.

The reason I like this idea is because I am reducing my taxable income AND I can take 50k or 50% of my money out as a loan (whichever is less) as a tax free loan.

Best of luck whichever you decide

I *think* that the recapture portion is taxed at either 1)your ordinary income tax rate OR 2) 25%, whichever is lower. 

Best of luck on whichever path you take. 

All adjust based on time and occupied status through a SmartHub or Alexa, whichever you find easier.