(Rental income - rental expenses) + all other income = taxable income. 

So if a property generates $100,000 of cash flow and $50,000 in depreciation, then the taxable income to the individual will only be $50,000.

It sounds to me like unless there are some missing facts here, or I'm misinterpreting your statement, your "tax person" who suggested that rolling your former employer's 401(k) into a Solo 401(k) would be a taxable event isn't aware of the rules.It sounds like you are eligible for a Solo 401(k) since you have self-employment income from being a real estate agent and flipping from which you can make contributions into your Solo 401(k)And you can certainly buy properties in your Solo 401(k), so your goal of using your 401(k) funds ASAP to start acquiring properties is very doable assuming you qualify.Do you really need these funds before retirement? 

But more opportunities for state refunds not to be taxable.

Again, these would be distributions from the LLC.I'm guessing #1 circumvents the LLC from realizing taxable revenue (as loan proceeds aren't revenue), but in #2 the LLC would be recognizing taxable revenue.Sorry!

Normally real estate businesses show a taxable loss thanks to depreciation.

My taxable income last year was just $700.

Otherwise you simply may want to take an equity draw which is a non-taxable event (check with your cpa). 

Distributions are only taxable if you received money back over what your basis in the partnership is.Let me know if you attend a local real estate networking event.

However, if you cannot meet that standard, this depreciation recapture will be treated as taxable income for in the year of the recapture, meaning it will be taxed at your top marginal rate.