Any income generated from the property, such as rental income, must be deposited into the Solo401K account, and all expenses associated with the property, such as property taxes and repairs, must be paid from the Solo401K funds.

The E will tell you 2 things...it covers rental property and what entities flow through to your tax return.

Right now you're earning 5.14% interest on your money, and you pay income taxes on every bit of that $1800 per year.Meanwhile, I won't even consider a rental property unless it pays me at least 10% cash-on-cash return and a minimum of $250+ in monthly cash flow.

I paid the $4600 for new unit (labor and materials), didn't file a claim since it might cause my insurance premium to go up. 

You might want to consider setting this up through an entity like an LLC for asset protection and tax benefits.

For example, if the market rent on the duplex unit you'd like to occupy is $500/mo, you can go rent another similar unit for $500 (-$500/mo on your personal bank account) and rent out the units owned by your Solo 401k (+$500/mo for your Solo 401k).As you can see, -$500 and +$500 equal the same net effect in the short term, but long term, you'll accumulate wealth more rapidly because when you go to reinvest the cashflow from the 401k-owned unit you were going to occupy (but rented out instead), the tax benefits of full reinvestment will add up faster.How do I pay the returns back to the 401(k)?

I wouldn't buy this thing for any more than $55k/unit- all one beds is a bad deal. too much missing info- historical vacancy, tax returns etc etc. 

If you're in So Cal, the closest neighboring city with better property taxes (they don't reassess on the sale), landlord laws, prices, etc. is Nevada (particularly Vegas). 

@Grace SantosOn Tuesday May 14th we're hosting a meetup in LA which will feature a guest speaker, CPA Edward Markaryan, who will be going over Tax Strategies for Short Term Rental owners.

After expenses and mortgage, I end up with a net cash flow of anywhere b/w $150-$250 which I find rather small, and I wonder if this could even get eaten up by tax filing time.