Of course I don't expect potential renters to bring the deposit & first month with them when they come to look at the house, but once someone has looked at the house, said they like it and that it meets their needs, and the price is affordable to them, and I have pre-screened them through the in-house application, I expect action or I am going to move forward as if they never existed. 

@Thomas Stanley  it happens to the best of us... the low end low income home in the US is about as tough a asset class as exist.. yet many who venture into them have little or no experience. 

The part where I'm not clear on is for an existing rental where tax returns are available.I know that Principal, Interest, and taxes are all included as debt.  

Hi MitchBeing a foreign national, I can tell that yes, there are obstacles :- First one is ignorance : lack of information and educationIn our country (France), owner financing does not exist.

Until a couple days ago I did not even know these programs existed.  

From there, they will likely deliver those documents to you, help you setup a bank account for the trust, and support you in any transfers or rollovers of existing retirement funds into the new Solo 401k.

By renting a second place for a period of time, you are just worsening your financial situation by increasing your expenses while not adding anything to the asset column.Personally, if you're OK with living where you are now, I would use down payment and go hunting for an investment property that will produce positive cash flow to help offset your existing losses on the condo.

When I describe the type of houses I buy and the numbers, most non-investors are surprised that type of property exists in my area.So maybe they are available in your area: ask local investors.

It wasn't presented as "watch out for this problem" - more like "the contract might say this, so don't freak out about it, it's normal for Texas".Most of the people getting this document would have been buying suburban-type houses, new or existing, for maybe $130K on up (1997 price).

I suggest you ask your bank about a blanket loan, they should be willing to refinance the existing home at the payoff if you were keeping it as a rental and provide purchase money for the new home.