@Joe BakerGood question.Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m); andThe Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (CHECKBOOK IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

I did not - and do not - have an SSN.I had three international students rent a house (a brother and two sisters), when I asked them to demonstrate their ability to meet the financial obligations, Papa transferred more than the amount of the total annual rent into an escrow account.  

It is the intent that must be shown by a borrower and if something happens beyond your control, like divorce, or job transfer, you can be granted a waiver as to the occupancy.

With "The Great Wealth Transfer" According to Forbes, some experts are estimating that somewhere between $30 trillion to $68 trillion dollars will be shifted from baby boomers, people born between 1946 and 1964, to Generation X (1965-1980) and millennials (1981-1996).My client's $1M+ portfolio is a portion of that current transfer.

Unfortunately  after a conversation I had with NY state today,  I learned that if I accept the 50k I can not sell, transfer deed or refinance the house for 5 years without paying the 50K back…bummer. 

If the property had been previously flipped or transferred in the prior twelve months it will probably kill the FHA financing.

Especially if there's a good transferable warranty from the service provider.

However, the original title company said even though the transfer occurred during the original owner "MARY" did not own the property, the liens associated with JOHN could "stick" onto the property.

You are going to incur transfer taxes anyway, as well as the cost of an additional insurance policy.

I know you meant to include it, but for others reading, you need to subtract out rehab cost as well in coming up with MAPP.On selling costs, be sure to include agent commissions, settlement fees (deep prep/transfer/etc.), and factor in the potential for seller concessions (FHA buyers with minimal cash often request 2-3% seller concessions to cover their closing costs, and can ask for up to 6%, per FHA).Don't assume you can necessarily gross up the sales price to recover these concessions, as the property has to appraise out.