My home is worth more than $750K based on comps, but TD Bank only qualified me for $200K because I'm retired and am only pulling in a retirement annuity and social security as income. 

We used a $125k HELOC on a SFR rental we own in Lake Forest Park, borrowed against my annuity, borrowed against my whole life policy and a small family loan.

You could point out the benefits of an owner financing arrangement from a tax perspective and see if he is at all interested in a steady income without having to deal with the tenants.Aaron, yeah I looked into a 1031- like option (i.e. into an annuity) would work but I was not sure.

You could argue that because inflation is greater than the return you get on a savings account, my 100,000 is worth less and less every year.So I don't need cash flow, and as things stand now with my TSP (Government equivalent of 401k) and annuity, I should have a cash flow when I retire that will be adequate.  

Learn about imputed interest which is minimum interest  Learn about reverse mortgages compared with installment sales , A good source is AARP  Learn about annuities and compare them with installment sales  Use the term legacy, leaving a legacy of your children or church or a charity "The cash flow survives your death  Mr. seller meaning that your gift can be inherited by someone that you care about or some institution you care about" If the seller is gainfully employed with W-2 income, and it's a free and clear house, you can have them get a 50% mortgage, then buy the house subject to existing financing, take over the payments, and give them a single payment note for their equity There are between 34 to 40% of all houses that are free and  clear of mortgages.

One thing that is interesting is that you can see that only a small allocation (between 5-7%) of a millionaire's networth is allocated to annuities and life insurance and 3-5% of a millionaire's networth is allocated to qualified retirement accounts which leads me to believe that these middle class and upper class millionaires rely less on life insurance, qualified retirement accounts, and annuties as they have already self insured themselves with their small businesses, real estate investment income, and equity holdings. 

You've sold that $51,000 in equity with the house, and are in essence getting an annuity from it.  

Make money while you sleep if you will, or an annuity for retirement.

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (checkbook IRA) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business.