So financing it is an issue.I have experience with several remodels, additions and gut rehabs for my properties where I was the GC (planning, permits & inspections, subcontracting)I can probably start small and purchase cheaper properties with cash (around $100k+) and rehab/remodel/rent/flip and build up a portfolio.

The best he can hope for is to plead ignorance; blame the contractor, and hope he only gets charged for the water that has been used and not being fined in addition to usage.  

Duplexes give you the additional tenant while still being in nice neighborhoods.It is even more critical to screen your tenants effectively for smaller properties as even one vacancy can create a huge headache. 

He likes to be paid that way on fixed cost jobs.This company will be building a garage for me and a room addition on another house as cost plus. 

You'll need to check with your municipalitySome additional food for thought:Lot splits in my area take a lot of time, patience and moneyYou can finance the construction of an owner-occupied 2-4 units with an FHA loan for as little as 3.5% down but the requirements are kind of onerous. 

In addition to finding out the values of other properties in the area, the only way you'll be able to get an 80% offer accepted is if the property needs some work or is distressed to some degree.

In addition, employer contributions may be withdrawn upon the occurrence of any of the following events:1) The occurrence of a Hardship,2) The attainment of age 59 ½3) The employer contributions being withdrawn have been accumulated in the solo 401k plan for at least 2 years; or4) The participant has participated in the solo 401k plan for at least 5 years.Salary Deferrals(employee contributions): Any employee contribution (including any earnings on such amounts)may not be distributed prior to the solo 401k participant’s severance from employment, death, or disability.

Additional comments to help answer questions you may have: She has never said whether she intends to rent the home in the name of a company, nor has she offered any financial info on any potential guarantor.

There are other miscellaneous expenses that will occur that can add up to an additional 5% or more.  

Through the program, the insulation is 90% off, and then I can take an additional $750 off for a knob / tube inspection.