Let's break down the differences between the various retirement account options and then discuss which might be best for a high-income, self-employed widget manufacturer looking to invest in single-family rentals.Traditional IRA (Individual Retirement Account):A Traditional IRA is a tax-advantaged retirement account where contributions may be tax-deductible (subject to income limitations).Investments within the account grow tax-deferred until withdrawal.You can invest in a wide range of assets, including stocks, bonds, mutual funds, and real estate.Withdrawals are taxed as ordinary income, and early withdrawals may incur a 10% penalty.SDIRA (Self-Directed Individual Retirement Account):An SDIRA is a specialized type of Traditional or Roth IRA that allows you to invest in a broader range of assets, including real estate, private equity, and more.It offers more investment control and flexibility compared to a regular IRA.It requires a custodian or trustee experienced in handling alternative assets.You must follow IRS rules and restrictions for investments within the SDIRA.401(k):A 401(k) is an employer-sponsored retirement plan, typically offered by larger businesses.Contributions can be made by the employee on a pre-tax basis, and employers may provide matching contributions.You can typically invest in a selection of mutual funds and, in some cases, your employer's stock.Withdrawals are taxed as ordinary income and may incur a penalty if taken before age 59½.Solo 401(k) (also known as a Self-Employed 401(k) or Individual 401(k)):A Solo 401(k) is designed for self-employed individuals or small business owners with no employees (other than a spouse).It combines features of a traditional 401(k) and a profit-sharing plan.Contributions can be made as both employee and employer, allowing for higher contribution limits compared to IRAs.You have investment flexibility, including the option to invest in real estate.Withdrawals follow standard 401(k) rules.Now, for a high-income, self-employed widget manufacturer looking to invest in single-family rentals, the best option among these depends on several factors:Income Level: High income earners may benefit from a Solo 401(k) because it allows for larger contribution limits, especially if you're looking to maximize retirement savings.Business Structure: If you're truly self-employed with no employees other than a spouse, a Solo 401(k) is a good fit.

Prize money is taxed as ordinary income.  

I think what I'm trying to do is out of the ordinary and I realize it might not make sense.  

Once established, say years 5 and on, I believe my experience level would be to a point where I would only rely on them for extreme situations because by then I should have experienced most of the ordinary issues.

If this is an ordinary property I would not want to pay more than 30k, including rehab.

This is called an installment sale.You will recognize gain taxed at cap rate and the interest income taxed at ordinary income with each payment. 

I think if you are only turning properties over for short term profit and ordinary income, why burden yourself with the expense of an LLC? 

That's the debut for the $20K they would have sent in if they were an ordinary lender. 

No and yes.I can always, always contribute to a traditional IRA from any source of ordinary income (passive or unearned income cannot be contributed).

It's 4 bedrooms 3 bathrooms with partial lake views and a hot tub on the patio.