The solo 401k plan participant may withdraw at any time (after completing a distribution form), all or any portion of her account balance attributable to “rollover contributions” and/or “after-tax contributions.”Employer Contributions: Employer contributions are subject to more stringent distribution rules and may be distributed upon the solo 401k participant’s severance from employment, death, or disability.

I'm in Pa, so we have the Upset sale initially and then the Judicial sale (free & clear). 

I’ve got a general idea of my plan, which I’m drafting formally on my desktop.

If you come to an agreement with the seller, you can say that you'll have the formal contract prepared in a couple of days for the seller.

I am forming a team/business partner to start on real estate investing, and I want to ask if we need to get some kind of formal business licence such as an LLC...or we can just do it in personal/individual level? 

I took my time to submit a formal written offer with proof of funds.

and I give them formal 3 day notice. 

But I have changed my formal dining room and sitting room into bedrooms. 

There are formalities that have to be followed if you create an LLC and if you don't follow them properly, having an LLC is pointless.

If they have been there for sometime and are paying the rent, I wouldn't bother with doing formal tenant application & screening.