Saw on another blog references to " some real estate transactions can trigger the need for a 401k to file a tax return and pat taxes".Looking to use my solo401k to invest in real estate but want to avoid making a mistake.

Just be an expert at one thing at a time.I was in your situation for a long time and I never pulled the trigger until I moved to Des Moines-I can only recommend that you work hard to make connections (is there a REIA or Meetup there anymore-I used to go to the QC for them) and learn your market. 

If I use the line of credit to make improvements and then decide to sell and 1031 exchange the property into a new property can I use proceeds from the sale to pay off the line of credit without triggering a taxable event?

When you are closer to pulling the trigger, I would be happy to chat. 

I will take a step back and understand this first before I pull any triggers.

But before you pull the trigger, start looking for a place to reinvest the funds.

Then in 2016, prices went up more and I decided to pull the trigger anyways.

A transfer to an LLC will trigger the clause and should therefore be avoided even though banks are hesitant to ever foreclose as long as the note is being paid.

The closing of permits usually triggers the town to consider if an assessment should be adjusted.

I’ve actually wholesaled a few properties to some friends that live in South Tahoe.... they’ve done really well... especially as a newbie.... this type of investment will be much easier on you’re blood pressure.... but then again... if you can spend 100k- 150k id just look to Sac, Boise, or other places closer to you.If you do decide to invest here.... you’ll probably want to visit out here a few times.... go to a few meetups.... and then, if you’re comfortable with the idea, pull the trigger.