As such, practically speaking you would need to be self-employed to set up a Solo 401k as there are many Solo 401k providers who offer IRS-approved plans which allow for investing in real estate. 

Hanson also faces state charges in Greene County Circuit Court for a similar, but unrelated, fraud scheme.The FBI and IRS investigated this case.Now, I knew this guy !  

Just spoke to a 1031 exchange lawyer and he said that this is not a good scenario and I cant do a 1031 exchange, that i did not hold the property for long enough time and i would surely be audited by the irs if i did this.  

v=vhwy3BVYzpEI will pay cash or terms70% of ARV - repairs - fee for cashFree and Clear Houses - 90% of ARV no repairs on seller financing, low down, installment payment 50% of rent collected, pay interest on the IRS Imputed Interest Table https://turbotax.intuit.com/tax-tools/tax-tips/Gen...

(Whereas Capex costs are treated by the IRS as an asset investment - lasting longer than 12 months blah blah).Nevertheless, I certainly want to know the cost of the capex ASSETS I'll be forced to buy over the years - with NO increase in revenue - and I DO want to deduct them from my gettable income when I'm trying to work out if a deal is a "deal"!

You have to be very careful not to set off alarms with the IRS and the FTC. 

You can read it yourself, IRS section 121.  

IRS guidelines for a Real Estate Professional

On the contrary, it has been explained to me by an IRS attorney who has handled related cases before that this is not true, that in reality the lender has no skin in this insurance claim and will simply expect you to pay the mortgage regardless of whether or not your property is intact.

That isn't right.I'm going to venture to guess that someone isn't doing the math right OR that you lied to the IRS about your rental income when you did your taxes.If you lied, tsk tsk.If you were honest when you filed your taxes, meaning we think the math is being done improperly, go find a REI friendly lender local to you.