I am planning to participate in my first auction coming up in the next week.

I've never thought this was going to have much impact on real estate as there are many other areas where non-accredited investors can participate.  

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.)

You have no input into how the money is used, except perhaps in a general sense.Tax Purposes: Income from rental properties or from a business in which you do not actively participate.

You can as well as wholesale the deal with a voluntary participation like be the errand boy for the flip, you can ask for gas allowance or something.

@Eric Taylor, my motivation to participate would be the increase in rent.

But mostly it will involve your active leadership and participation(ie, site visits, status reports, performance penalty/bonus, etc).Personally, the more I read about and develop my leadership skills, the better I am at dealing with contractors.

I like to start expressing my gratitude for all of you who have responded all my queries, participated on my posts by sharing your comments or suggestions. 

This is a truly passive investment vehicle that will allow you to participate in all the benefits of real estate - cash flow, appreciation, tax benefits - but not have to be involved in any of the work. 

Tidbits of what we know: It sounds like 3 program participants would stay here (potentially alone without supervision, Worth mentioning I don't know the participants yet as they have not yet been selected).The participants have a highly structured day where they would leave early in the mornings.