Taxes are deferred but not avoided. * What happens if the owner carries the loan for us, and then we later sell the property to someone else?

And when do consulting/advice, it's all 1-on-1. 

With a ton of equity, and by all means, we are wanting to take advantage of the 500k tax exclusion if possible.There is also a probability that we will move back into this home in the future, let's say in a few years or so.

Rollover from your old employer 401k into self-directed Solo 401k is not a taxable event and wont' affect your taxes.

Nevada is landlord friendly, low property taxes, and close to CA.

Sales price: $900,000Seller finance: $400,000 / 2 year ballon / 7% interest rate / interest only monthly payment: $2,333 / no pre-payment feeEstimated monthly income: $9,300 / Annual: $111,600Electric separated - water $450 per monthProperty taxes: $16,700 (with property value assessed)Property Insurance: $6,300Renovation Repairs $150,000I anticipate the Re-fi appraisal to come in at a conservative $1,150,000. 

My lawyer  needs advice from someone more versed in the tax law.

What about Transfer Tax? 

It is important to remember that if you buy a single family home that you will live in for a while, consider living in it for 2 years before you sell because the IRS will allow you to exclude up to $250,000 of capital gain on your property from being taxed ($500,000 for married couples).

Are there conflicting tax issues because the real estate agent is a member of the LLC?