If I were to sell, I'd just put the money into mutual fund in a taxable investment account.

What else would be beneficial to place in the CFK agreement (in addition to cleaning the house)?

@Gretchen KnizeThe following compares the solo 401k vs the 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;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own Retirement funds business startup.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 (IRA LLC) 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 2015; 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.)

I'm sure that BP community will be very beneficial to you in being successful real estate investor.

Hello -I have used this forum in the past and it has proved very beneficial for continuing my real estate education.

Thanks @Aaron MontagueIm still not sure I understand how this is beneficial....from what I gather, if I was to do owner financing it would be at or near retail price......how does that work to my advantage?

Thanks to everyone who has responded, I appreciate all the advice, and will look to use it in closing future deals.The taxes and insurance are included in my months payment as will less than 20% down they won't let you pay them at the end of the year.And yes I lived in the home before moving out and turning it into a rental, which is how I was able to use FHA financing, I believe this strategy of moving every year or so is beneficial, as you get primary residence rates instead of investor rates when financing, however without rental income you do have to qualify for both mortgage payments.So as to one persons concern I do have rainy day money and my wife and I both wrk, and could cover both house payments with our income, so if worst came to worst and it sat empty we would be fine, and yes I am saving all$245 in a different account, and if it builds up over time I'll consider it a nice little bonus.

Losing a job, having company and not showing that he is worried about rent does not meet that threshold for me.With that said, if you want him out, I'm under the impression that you two can mutually break the lease at any time.

For the promoters on this thread....I have a call set up on February 7th with CrowdBouncer to discuss their warranty underwritten through Merchants Mutual Insurance Group for any non-accredited investors that pass through their screening that result in suits and dollars from said suits.

It's beneficial to us, the investor and the tenant looking for an affordable rental.