You will essentially replace the existing plan with the more flexible self-directed version.This does not mean that all investments in the current Solo 401(k) need to be changed.  

The investors would essentially be taking a second lien on a property with no equity and providing financing to a borrower with no down payment.

Meet with them in that market, get to know the market, think long term, think safety, think cash flow.Disclaimer: I sell Turnkeys (and I'm darn good at getting great deals) ;-)

Cash flow is your margin of safety and you can’t scale negative cash flow.

Your math looks good on the surface and as an agent here in Sacramento I can tell you I am seeing essentially the same things you are.

It's clear that you've got hustle, which is essential to getting started and excelling in REI. 

You're essentially buying tenant credit risk, so my clients spend a lot of time underwriting the tenant, industry, etc.

I love how these new "terms" crop up to essentially describe something that's existed forever (subletting).

I've had my fill of demo.Part of me wonders if doing a little wholesaling/making a little quick cash might help me make this transition (essentially, if I have a little slush fund I can use this to hire out without guilt).

@Chris Roche you already have a good suggestion above but the essential thing here is that you need a different lender.