Your seller should also be of the understanding that they are NOT taking the deduction.

I understand that.

. - Tax planning for 2022 and future years - Want to understand implications of doing STR and material partcipation rules. 

I don't understand why people use this argument.

Hey David, I can understand your dilemma.

@Russell Brazil,I understand your point about DTI, but I was thinking more about the fact that we would exhaust a significant part of our savings to buy the multi-unit first and would likely have to save extensively for a couple of years in addition to what we might cash flow from the multi-unit to have enough to buy our single-family home next.

I understand everyone has their own opinions and preferences but please hold off judgement.

We always suggest being prequalified before purchasing a property since that will help us understand our numbers.  

You need legitimate self-employment activity or business with "earned" income to be eligible for a Solo 401k plan.You can't contribute passive income from schedule E, but earned self-employment income from schedule C is eligible, so your understanding is correct. 

I understand everyone is a human, mistakes happen.