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;Both are prohibited from investing in assets listed under I.R.C. 408(m); andNeither may be invested in your own business. 

My recommendation to someone who is really trying to bootstrap it is this: Have as many things as possible in place in advance. have a pre-made lease set up, do some mock marketing for tenant lead generation, and save up all you can and cut out any extraneous expenses but also find alternate funding sources for an emergency.

@Victoria Dennis - The Hampton Roads Landlord Assoc is hosting a lunch and learn this year on alternative rental strategies - Air B&B, room rents, and group rentals.  

Alternatively, Is this something you could take on from NJ Jim?

Have you considered the Murfreesboro area as an alternative to Nashville?

Can anyone suggest an alternative setup?

I have my Financial Risk Manager (FRM), Chartered Alternative Investments Analyst (CAIA) designations and passed all three levels of the CFA Program on 6/7/2014 and may be awarded the charter upon completion of the required work experience.

I have my Financial Risk Manager (FRM), Chartered Alternative Investments Analyst (CAIA) designations and passed all three levels of the CFA Program on 6/7/2014 and may be awarded the charter upon completion of the required work experience.

hey guys.  i was just reading over some forums on here, and ran across a few flippers that say they use private money.  i have been nervous about ever doing that.  up to this point, i have used conventional financing ...

If you're able to find alternative financing, I would look at those first, but it did work.Kyle