@Angie Hensley Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.Landlord = Lord of the Land = Owner per deedAgent = someone legally representing the ownerProperty Manager = Agent

Lastly we have money in Roth IRA's that will also grow. 

It is passive investment earnings, not self-employment income.If you wish to take existing retirement savings and diversify into things like real estate and private lending, a self-directed checkbook IRA would provide flexibility similar to the Solo 401(k).

In his diagrams, he considered all rental properties as passive income, and had noted that profits (if any) from this passive income are not able to be utilized to fund a solo 401k or a self directed IRA.  

I'm looking to convert my IRA (just rolled over my employer 401k) into a self directed IRA so that I can invest in real estate through that vehicle. 

So I unfortunately don't think I can transfer the funds into a SD-IRA like you mentioned.

Both you and your father are considered “disqualified persons” to his IRA, such transaction will be prohibited.

I believe the 401K/IRA "managed investment" rip offs should be outlawed.

Nobody has a problem with putting money in their IRA/401k for 40+ years with zero cash flow.

@J Newman your husband can roll that into a self directed ira and use all the funds for investing and no loan to pay back unless you get financing on the property.