Solo 401k financing rules?
Hi, first post here... I've done several residential rental purchases in the past, but it was always with my own cash downpayments (cash I had readily on hand...). I've become more interested in the Solo 401k's as a potential way to free up more savings/cash I have to do additional deals. But as I've been researching the do's and don't do's within Solo 401k's, I read (correct me if I'm wrong on any of this...), that if I create a LLC to buy a commercial property, I can potentially set up a Solo 401k within the LLC, and use my own 401K money to buy/invest in that property. I read though that a constraint would be that I can't then 'work' on my own property, I would need to hire all the work out. But I've also read I can take out a loan (up to $50K) against this Solo 401K, and use the loan money for almost anything...
So... what I'm wondering, is could I set up a Solo 401K with $100k of funds, take out a loan for $50K (understand I need to pay it back within 5 years...?), and use that $50K of loan money as a down payment on the property I want to buy... Therefore if that $50K was 'loan money', I could then buy the property 'free' of Solo 401k rules, and would I still be able to do all the maintenance work/project work on that property myself? (Hopefully that all makes sense...). (I could then use the other money leftover in the Solo 401k to invest in other/different investment vehicles--within the Solo 401k rules...)
Thanks!