A commercial lender will lend to a corporation, under commercial loan rates and terms.A residential lender will lend to a natural human person, under residential loan rates and terms.Residential loans are where you find 30 year fixed, and low, interest rates.

I would love to use Home Depot or Lowes, however my counter top configuration is a bit more custom in nature and I need an accurate installation.

Another alternative would be to install double sheet rock to the ceiling after you insulate.  

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k SimilaritiesBoth 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; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The 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  (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.)

Angie -House is on a hill, so the first question that pops into my mind - is the hill natural, or added to the land by bulldozing the topsoil to create it? 

If you slowly work the process however and at the right time suggest seller financing while simultaneously raising private money to cover down payment and closing costs well then the deal MAY naturally unfold and become a low to no money down deal.  

Alternatively, you can itemize on the following:Maintenance/Cap-ExProperty TaxesInsuranceProperty ManagementUtilitiesLandscapingMonthly Income - did you include vacancy in this or no?

Doing this strategy on your own properties is much safer and a profitable alternative to the standard rental. 

Sounds like a terrible plan to me, unless you think you're going to spend significantly more time there than your post indicates or the expenses of alternative local living arrangements outweighs this cost of owning this unit.The way I see it, your plan hinges on market appreciation, which may or may not come.

However some bankers look the other way and dont care as long as you have a good payment and credit history.  2) If the above is NOT allowed, then what alternatives does an investor have to protect personal assets from unscrupulous tenants who may look to go after at personal assets in case of a lawsuit?