I have had a lender guide me in the conventional loan direction, which I could then rent out likely as a Midterm rental.

If you qualify for the STR loophole, it normally makes sense to apply it to the return.However, both you and your brother in law won't both be able to take advantage of it.

So from a “cash flow” standpoint, CA is less favorable over other options, but if you buy right, time it right, and have a long term outlook, CA can provide some of the highest appreciation rates in the country and when you apply leverage responsibly, your total returns can be quite large.One needs to decide their goals and then have the abilities and desires to get there.

Rolling over your former employer 401k to an SDIRA or Solo 401k is not a taxable event as it's a direct rollover. 

With this in mind, would you be sourcing properties off-market directly from the seller?

You report it directly on your personal return if your accountant determines you can (or if you remove one of you from the LLC).

I do not see significant swings in either direction. 

Hi Steve, rather than cashing out the 401k I recommend looking at setting up a self directed ira or (if you can qualify) even better, a Solo 401k.

I understand that traditional commission rates might not directly apply in this situation, so I'm curious to hear about any experiences or recommendations you might have.

Please feel free to send me a direct message.