Say somebody applies, they have good credit, no criminal history, job, etc, but for whatever reason I just do not want them as a tenant.

If they are all on separate leases, my suggestion above still applies.

@Onaje Barnes @p@Peter Nikic @Michael LeThank you for simplifying Cap rates and how it's applied.

From what I gather only your primary residents can qualify but I'm not sure on how or why to apply or if I even qualif...

Maybe bill your services as rehab/reno rather than wholesaling, but I don't know if there are state-specific laws for licensing and consumer protection that will apply in that instance that would stop you from doing it. 

I had 50k in reserves and applied for a conventional loan on a second home.

Therefore, you will want to confirm that the trust company allows for investing in an LLC and the associated fees and minimum balance that applies to the IRA account.2.

Please see more below:Solo 401k vs Self-directed IRA:A Solo 401k has several advantages as compared to a Self-Directed IRA including the following which specifically apply to your situation:Unlike a Self-directed IRA, you can have the account for the Solo 401k at a bank or brokerage that does not charge maintenance fees and where you will have checkbook control.Unlike a Self-directed IRA, if you use leverage (which must be non-recourse financing in either case) to acquire real estate with your Solo 401k the income will not be subject to Unrelated Debt Finance Income taxGeneral Considerations Re Investing Retirement Funds in Real Estate:1.

This type of situation doesn't apply to me at the moment.

You need to verify your rental agreement states how you will apply received payments -  it should specify that any received funds are applied in priority order to balance owed fees/penalties, current fees/penalties, back rent, and current rent,  in that order.