Getting Mortgage through Solo 401k

[Jesse J.]

Hi BiggerPockets,

Quick question here. Any of you done this before - buying houses with Solo 401k and renting it out. 

I am located in Phoenix - Chandler/Gilbert area. Good SFR are 200K - 300k. It is hard to buy these in cash.

[Dmitriy Fomichenko]

@Jesse J.

yes, you can do that. Keep in mind that the loan has to be non-recourse, conventional financing in a retirement account is not allowed.

I purchased a property in Goodyear 3 years ago in my retirement account, I paid $110K then, it looks that prices has gone up quite a bit since then. I used NASB and had to come up with 40% down.

Here is a list of non-recourse lenders, this might be helpful: 

https://www.biggerpockets.com/blogs/2810/50272-lis...