I have successfully defended multiple clients in this situation.Once again: Don is claiming his deduction correctly, and I am breaking the rules.

@Mike ReynoldsRegarding your comment that if you need funds you can use money from your side business:You can't use non-retirement funds to pay for expenses related to real estate held inside you Solo 401k.Subject to the contribution rules and income limitations, you may be able to contribute non-retirement funds to your Solo 401k (e.g. as an employee or employer contribution) and then you could use the funds in your 401k to pay for expenses related to real estate owned by your Solo 401k.

Remember also, that FHA is generally intended for an owner-occupant/primary-residence for at least the first 12 months, but as was discussed above this can be worked around.If a client qualifies for Conventional I almost always advise them to use that product rather than FHA as a general rule - but a lender will have the more relevant, tailored advice.

I do BRRRRs mostly and still can hit what some seem to think is hard to find—the old 1% rule. 

Tax-Exempt Bonds: Tribes can issue tax-exempt bonds for certain types of developments, reducing financing costs.Challenges: Projects often need to be structured as joint ventures or leases with the tribe, and compliance with tribal laws and federal rules is critical.

I have two primary rules of investing 1.

Depends on the town’s rules, though, so check that first.Renovation Loophole: Some places let you raise rents or get out of rent control if you do big renovations.

I recently sold one I had on Seabrook Island because the club/regime/HOA were frequently changing the rules and making it harder to operate smoothly.

It easy for people to get up on their crystal palace podium but the moment it comes knocking on your door or in your neighborhood peoples opinions change drastically. 

If you're looking for cash flow (like the 1% rule) and amazing appreciation potential, I do recommend a market like Columbus Ohio.