My property taxes are lower, I pay same management and maintenance expenses (percentages of gross) as California, and my rents are guaranteed by Hud.

This money would not be accounted for as income but would essentially be in a spending account controlled by my company and then a percentage of any profits made would be distributed back to them.

I am trying to find the rule that confirms or denies the position that an entity that generates more than 25% (or any large percentage) of its income from passive income is not eligible to have a solo 401k plan.

My idea is since I currently have a full time job and don't have much downtime, I would go through a Realestate Investment Group that could handle on site management and finding tenants in exchange for a rental percentage.

The operating partner typically invests a smaller percentage of capital and collects a fee and a carry, or in other words, charges a regular ongoing fee to the project for active management and takes a disproportionate share of the profits for returns achieved in excess of an agreed-upon structure of investment rate hurdles (known as a waterfall).

What percentage should I use?

What sort of percentage will you be offering investors on a rehab and flip?

@Tim Puffer, My inputs well undoubtedly get more detailed and "accurate" as I get better at this, but as a practical expediant, I used some percentages of revenue and purchase price to estimate certain costs.

I researched a little and found just filling out a quitclaim deed stating my percentage.

Do you own real property or just a percentage of real property?