If he doesn't need the money immediately, then tuning his property into an annuity might be just the ticket for retirement income.If he is facing a large capital gain, then by carrying the note on your mortgage, he would be able to defer that capital gain over a number of years (in Canada it is 5 and I believe it is similar in the U.S.A. ....

But running the numbers, doesn't produce a very attractive return for me -- on a hassle-factor/risk-adjusted basis I'd rather buy him an annuity. 2) The math looks much better on a 8-10% preferred return + 50/50 on profits, but that really doesn't leave my dad with much. 3) Loaning him 50% of the downpayment, which he pays back through 3a) his portion of the net cash flow 3b) equity appreciation upon refinance. 4) Another thought, but not sure how this would work, would be setting up the hold-co partnership or trust such that 100% of his interests transfer to me (as opposed to my step-mom or half-brother) when he passes away (but my interests pass to my wife, if I do not outlive him).Is there some better option that I'm missing?

Ask to look at their contract offers, ask if they understand and have used the following clauses in their offers; hybrid offer, delayed settlement, banking days, automatic extension, check funds, study periods, vertical break ups, front porch clauses, substitution of collateral, seller annuities.....to mention a few.

As a result, many will invest in real estate either using a Solo 401k or an IRA LLC instead.Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both 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.)

This also allows the house to be a more of annuity than a "job" allowing me to manage it myself.

Some dislike the following, but an insurance annuity can be useful  here.

Or should I try and see what I can take from my retirement account or my annuity fund?

Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both 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.)

But they have $30,000 cash & the other $15,000 is in an annuity they are having to wait on it to go through before they get their money. 

Seems we also got off on borrower qualifications which usually is the discussion.Seller "qualifications" or more as to it SF being a right solution.Sellers may have issues with a property, such as repairs being required, that may eliminate a property from qualifying.Another marketability issue, competition in the market, SF broadens the pool of likely buyers.Type or style of a property may make it difficult to finance, the lack of comps for a unique modular home or a burm home may require SF to get it sold.Zoning may be an issue keeping a property out of conventional lending, or an unqualified FHA approved condo development may hinder financing efforts.In these case when there is a property deficiency you need to consider if it can be cured, repairs can be made but other deficiencies may not be curable which may require longer term financing arrangements.To the seller, it may be a requirement to solve the selling problem, but if it's an option you need to discuss the benefits, more money over time, better return on the money as an annuity income, tax benefits might be applicable and a quicker sale.The next bridge is, does SF make a good investment for the seller.