Instead, I collect a "non-Refundable Holding Deposit" that converts to the Security Deposit ONLY upon lease signing and paying of the First Month Rent and any remaining Security Deposit (if more than the Holding Deposit).

If you want it to remain a salon you could always advertise for a business partner who is a stylist (with a business head) and  work out a deal.

Now your remaining properties will definitely cash flow and provide a good income from each.

Reverse Mortgage interest rates are about ~5%..Our house has a 1st of 20% LTV...My husband wants to get a Reverse Mortgage up to 40% LTV, to payoff the 1st Mortgage (20% LTV) and convert the remaining 20% LTV in the form of a credit line.... 

I pay mortgages, utilities, repairs, and other expenses out of this account.Security deposits are placed in savings and remain there until tenant vacates.

You need to remain under your local jurisdictions occupancy laws.  5 unrelated people in a unit is very common, but I think Denver for instance might be 3 unrelated persons.

And if they have, they have all kinds of rights to remain there until legally evicted.

@Dave PetersonIf your interest is primarily in taking a participant loan for $50k, there will be at least $50k remaining in the Solo 401k for investment.

Keep in mind that we're usually regulated on percentages on what we can charge. 1% of $75K is quite a bit less than 1% of $300K, but our fixed costs remain constant.

That said, if the property is a 2-4 unit then FHA will definitely be better, as the down payment will remain 3.5% while Conventional's limit will increase to 15% or 20% depending on unit count.