I would assume it's a legitimate way to offer on properties, but is it possible to do so with REO properties? 

A PPM will run you anywhere from 5-15k to have prepared by any legitimate corporate attorney.

In the same vain, I legitimately have a uniform I wear which consists of an old sweatshirt and jeans in the winter or an old plain t-shirts and shorts in the summer.

I have what seems like a legitimate offer of $37,500 from someone I've done business with before.

But, here's what I offer in return:-  The contractor legitimately gets more work-  The contractor doesn't have to waste time giving me bids that I will reject (when I have a contractor I like, I don't get multiple bids)-  The contractor doesn't ever have to worry about getting paid (I always carry my checkbook with me)-  The contractor can save money on advertising costs -- I'll refer him to lots of other investors and he'll keep busy without advertising-  The contractor doesn't have to worry about someone who wants to cut corners (I don't do that)-  When a project goes smoothly and comes in on budget, I pay bonusesThese are the things I offer in return for lower labor costs. 

ROI wise I haven't heard of any real legitimate complaints so as long as you run the numbers and they work for you then I'd say go for it.  

I don't see how she'd legitimately get a tax benefit, unless perhaps she itemized the mortgage interest deduction while not reporting that it was made on her behalf.

I'm glad, David, that you run your business legitimately.  

As in this is something I'm being anal about/want above and beyond minimum code.Or, is a short elbow and schedule 30 pvc non code compliant and I'd have legitimate grounds to have him eat cost to redo.I know it isn't done what I  consider "right" or up to best practices, but is it "wrong"?

In order to establish a Solo 401k plan you need to have a legitimate self-employment activity that would produce 'earned' income, for example:Providing consulting services to clients and earning a fee as a result of thatReal estate agent helping a client buy or sell a property and earning a commissions as a result of thisBeing a "flipper": you buy a distressed property, fix it up an sell it for a profitetc. etc. etc.You don't 'earn' a rental income, it comes to you as a result of you making an investment, it is passive.Earned self-employment income is reported on a Schedule C of your tax return, where as rental income is reported on a Schedule E.If you have a 401k with the current employer most likely you will not be allowed to transfer it to another retirement account until one of the following occurs:You are no longer employed thereYou reach a retirement ageThere could be exceptions, but the chances are you can't move those funds.Your options would be either custodial self-directed IRA or if you wish to have a checkbook control you may want to explore IRA LLC option.