A Solo 401(k) may be advantageous for self-employed individuals, offering the potential for participant loans, higher contributions, and no custodian fees, as well as higher contribution limits and the option for tax-deferred or Roth contributions.This post does not create a CPA-Client relationship.

If you’re looking for ways to make the numbers work, sometimes that means evaluating different markets, financing options, or property management strategies that help mitigate risks like vacancies and maintenance surprises.You’re not alone in feeling like 2025 could go in multiple directions, but one thing remains true—real estate continues to be one of the strongest vehicles for long-term wealth when approached the right way.

I think we have the option of taking out a heloc  and begin to invest elsewhere.The other idea , that I was thinking is paying off our primary residence which we owe 425k.

As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

If you won't be occupying a unit and at least one of the units is occupied by a tenant, you will want to purchase a landlord dwelling policy (there are other options besides a landlord policy but I won't get into that here). 

Your best option would be to refinance your loan (if any) and get a construction loan for the improvements.

Seller will be taking a 30k+ loss with this route.325k with 50K down to seller, 3 years of payments $1600/month, and a balloon payment of 215k at the end of 3 years.Benefits to me: (1) 10k less downpayment, (2) with the conventional route, the loan would be at 228k after 3 years of payments, so I will gain additional equity with the 2nd option since I will owe 215k (presumably I will have to refinance at that time).Benefit to seller: she gets over asking price, 50K upfront and $300/month of cash flow.Does this offer and structure sound reasonable?

They have decent rental markets, and there are options where you could get in with a 20% down payment.

Question 2: if homes upside down on mortgage what are my options?

When I have some free time, I'll research other options that won't cost a fortune for the small guy.