@Jason MoranOne of the benefits of the Solo 401k over the IRA is the exemption from unrelated debt financed income when using the Solo 401k to purchase real estate with leverage.

LLC’s typically protect you, hopefully from accidents and lawsuits, not from the debts the LLC incurs.

Not too much debt.

Can you explain why increasing debt/mortgage (Cash-out) that will ultimately decrease your cash flow in that unit is better than just letting that equity sit to obtaining a higher cash flow from rent?  

Your responsibility is providing housing and collecting rent.

Asking Price: $125,000Gross Scheduled Income: $15,900/yearLess 5% Vacancy: $795 Operating Income: $15,105Less Operating Expenses: $7,630Insurance (1% of purchase price): $1,250Property Taxes: $815Management Fees (10% of scheduled income): $1,590Repairs and Maintenance (5%): $795CapEx (10%): $1,590Misc. (10%): $1,590Net Operating Income: $7,475Less Debt Service: $681/month, $8,172/year (assuming a 5% down payment on a 4.5% mortgage, with .8% PMI)Cash Flow: -$58/month, -$697/year

The only thing the super lien accomplishes is that any HOA lien/debt Remains attached to the property after a mtg foreclosure.

To collect on a certificate that had not been paid off, before 7 years when it expires, you have to apply to the tax collector to send the property to a tax deed auction.

But make sure you have first your debt under good control, and good personal reserves and for rentals (6+ months of PITI).

I would expect a lot more turnover and bad debt than you calculate.