Just reading into the COVID w/d available for 401ks out there.  100% of my funds are locked in my employer's 401k plan and I am considering taking a distribution and then immediately make a contribution to a Self-Directed IRA to invest a portion of the funds in R/E.

As an owner-only business retirement plan, the Solo 401(k) has higher contribution limits, allowing you to build your savings on the front end as well as providing investment flexibility.

Because I would like to contribute yearly to Roth IRA, if possible 

(I am trying to figure out that MAGI thing to see if I can still do a contribution to a Roth IRA because I worry my MAGI might be more than allowed for Roth IRA contributions)Would you say if I just take my w2 income and add rents?

My Roth IRA yearly contribution of 6000-7000 hasalready been reached.

In addition, if you are self-employed with no full-time employees you may wish to consider opening a Solo 401k instead of a self-directed IRA as it has several advantages over an IRA LLC such as much higher contribution limits, direct checkbook control (i.e. no need to have the account at a specialty trust company), ability to take a 401k loan, exclusion from unrelated debt finance income tax with respect to investment in real estate acquired with non-recourse financing, etc.In addition, please note if you purchase debt-financed real estate with your IRA, unrelated debt finance income tax should apply to the income attributable to debt-financed real estate held by your IRA.

This monthly preferred return payment continues until the investor's initial cash contribution (down payment and closing costs) are repaid in full.The remaining monthly profits are split 50/50 between the investor and myself.If we sell the property (for a gain) the mortgage gets paid back first, then the investor gets their initial contribution back, then the remaining profit gets split 50/50.Do you think my structure is reasonable?

My gf and I will be getting a house in the next 6 months and when we do it I would like to be able to contribute to our Business. 

Does it make sense to decrease my 401k contribution?

It seems like the house could be a decent rental, but the property needs rehab and I have no funds in the SDIRA to pay for the rehab to get it rental ready.I do have an outside IRA, but the funds in there might not be enough.I have a 457 plan through my current employer, but that does not allow me to transfer funds to the IRA.My employer also does not allow me to contribute to an outside plan.Do you know of any other options on how I could get funds into my SDIRA to rehab the property?