Overall, this strategy is less work, less risk, and earns a higher return than the stereotypical turnkey duplex.Alternative 2: For those willing to assume more work and risk, in exchange for a higher ROI.

Maybe the influx of cash purchases made in south florida with money that was not earned in our local economic market is causing a false inflation and overevaluation of properties.

Brian gave you some great info.You can put more money into your Solo 401k if you have earned income from your self-employment activity.

But once you get that first deal done you go from the "I THINK I can do stuff and I want to experiment with your hard earned money" to "Check out what I'm doing.

Here is my conundrum: I have good credit (730), a decent bit of money available (around  $37k), have my car paid off, have a secured loan out that pays itself back to build additional credit, but I do not think I could get a mortgage because of this: EARNED INCOME.  

These days we tend to redeploy retained earnings as investment into our real estate business (the goal is to become our own bank).The real estate business - at least ours - does not throw of cash flow like the custom software business.  

Bird dogging is a good way to earn while you learn about real estate investing.I am sure there are people like me in your market who would love for someone like you to come their way. 

You'd have to earn 40% ROI just to break even.

Work backwards from what she can reasonably earn in six months and see how helping her financially then compares with better options for her, your own financial goals, other REI opportunities for your 75k, and any ways you might be more effective as a friend.Forgive my wordload.

The Solo 401k offers a lot of benefits over an IRA if you have earned income from self employment and no employees of your own.Otherwise, the self directed IRA can be a great investment tool.