Hey Elliot Jones besides all of the things around making sure you find a place in an area that has some possibility for price appreciation, I would caution to be very conservative on your projected incomes and expenses.

A license can be expensive to maintain.

Maybe an LLC where you are both members.When you get to more than a few people investing, you enter syndication territory, which is very complicated (and expensive).

Unless it is a really killer steal, your Practical options are probably at best to recoup any Actual expenses on this deal, and move on.

For calculating expenses I'm taking a percentage from the monthly Rental Income.  

Is the demand just low at this point?

C = lower middle class housing, more multi-family mixed in but decent places, some crime but low-level stuff nothing dangerous or violent.

The issue I find in my area is the rents are very low which make it difficult to work the numbers.

And even if I can open a Solo 401K with that low amount, I heard that if I stop making money in my LLC or close my LLC you have to close your Solo 401K and transfer everything into a regular 401K.

At 50% expense ratio a 5 cap would be 6,480,000. which still would make this a good deal.