But you want the tax basis to raise and you also do not want to saddle a new company with too much debt so you cannot get a line of credit right out of the gate. 

I only say this because I had a friend use the BRRRR strategy but then couldn't get approved for a 2nd property due to his debt to income ratio. 

If there is a debt owed I will send a bill.  

Self-directed IRA A Solo 401k has several advantages as compared to a Self-Directed IRA including the following which specifically apply to your situation: Unlike a Self-directed IRA, you can have the account for the Solo 401k at a bank or brokerage that does not charge maintenance fees and where you will have checkbook control.Unlike a Self-directed IRA, if you use leverage (which must be non-recourse financing in either case) to acquire real estate with your Solo 401k the income will not be subject to Unrelated Debt Finance Income taxGeneral Considerations Re Investing Retirement Funds in Real Estate:1.

Like you mentioned, it's not just W-2 income, but what debt they have. 

@Ned Carey Thanks for the feedback, I’m leaning that way, I’m just not a big fan of debt.

You will try to use logic and say “but I’m paying down the debt too!”

This way you could keep all the debt financing in the business vs utilizing your primary & rental real estate.

This differs when you are bringing in leverage, as your mortgage reduces your NOI after debt.

It was treated as unsecured debt during the repayment plan.