Including these assets, cap rates on the wide range of properties that offer opportunities to add value start in the mid-6 percent range, with attainable terminal cap rates starting roughly 100 basis points higher.

Yep, all day every day @Jessie Redd! 

@Gregory Iciano It's more of a block by block basis, not really neighborhoods that you should be staying away from.

If he wants to be less active, then multi family but hiring a property manager since he has a great career and doesn’t need to be bothered with the everyday drama that can come with being a landlord.

@Nef Ojeda I would say it depends on how much contact you plan to have with the RE agent, if you want to call them every day, maybe don't plan a year out. 

If you have already identified the property, you may add the travel cost (there are more rules on what are business related) to the basis to be the most conservative.

I am taking steps to educate myself every day with multiple tools and credible training to prepare for launching my business this summer when I am back in Seattle.  

Very few people ever get into the 'best' market on a purse analysis basis.

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 take your depreciation deduction every year on your taxes according to the depreciable cost basis and asset life within MACRS.