My question is: am I able to use my income from my employer to make contributions to a self directed 401k plan that is set up by my side business?

@Colin Reid If he does it on his own, then you better make sure he has his own workman's comp and is insured because he wont be covered by his employers insurance if he does the work outside of that employer.

What other methods/options do you propose to purchase and rehab?

Your CPA will likely point out that self employment taxes will be due on the earned income.

There are other differences of course  reporting, resale times State Approvals, SEC pre approvals, Suitability Standards, and advertising methods.  

I use small contractors who like my method because they can work around my schedule and they know they are in an out quickly with no obstructions in their way. 

Last 3 years business grossed over $300,000.00The wife and I are employed by our business.

That´s what´s on my mind right now, but I am actually very open to learn about different investment methods here in San Francisco and which will fit me best. 

I see a lot about how you should secure your method of financing prior to looking for a property.

I love my job and it provides me with the freedom I look for as well as good earning potential.I'm here as a referral from a local investor and my goal is to be completely independent from the employment system.