If your Solo 401k were to obtain a non-recourse loan secured by property owned by your Solo 401k and then you subsequently took a 401k participant loan, this could be challenged as effectively a prohibited personal loan secured by your 401k assets.

Theres a lot of competition in Milwaukee because the lower price point so it not only draws a lot of locals but that outside investment as well. 

Do you offer construction draws?

For investment purposes, if you can get a line of credit with not fees until you draw and pay interest only, that's a pretty good deal.

The other thing I am considering just taking cash out refi on my primary home to pay for the rental property in full and then subsequently expensing the mortgage on the rental as it will be used to fund my rental.

As soon as I gave him the first 6k draw (did not do line item bids on this deal...), his guys were never at the project, but out at other jobs he could afford to take on now. 

Alternatively, here's my idea.Sorry for the crappy drawing but it should convey the idea at least.

A HELOC allows homeowners to borrow or draw money on multiple occasions usually over a period of 5-10 years, as the need arises, up to a maximum amount.* As mentioned above, a home equity loan usually has a fixed mortgage rate, while a HELOC normally has variable interest rates linked to Bank Prime.Typically, during the first 5-10 years, borrowers need to pay back only the interest on the sum(s) they have borrowed.

If you want to get an idea of how these structures can protect you from liability be sure to check out this article.I encourage all people entering a partnership to sit down with an experienced attorney to have them draw up a good operating agreement which lays out a strategy for the property.

For the Philly Area, you are looking for around C class neighborhoods that draw the influence from the nearby hotter flipping territories while still benefitting from the lower price entry from being surrounded by a rental territory.