My initial plan was to cash out my 401k and pay the 10% "dummy" tax.

Henry the 8th, I am, I am ... whoever is born (records) 1st is more senior, those born (recorded) after are Junior to them ... and 1st lien is not always the most Senior either ... the tax man has been around forever and always takes his cut first :)

My recollection is that if it is your primary home for 2 out of the last 5 years there is no capital gains tax on the increase in value up to a $250K profit for a single person or $500K for a married couple. 

I'm trying to track down a few property owners in Ramsey county. If you're a subscriber to their online lookup service please contact me. 

I just lost a significant amount of money with a TAX LIEN CLUB that basically sold me their bad tax liens worth nothing in a state where I just could have bought the tax lien I wanted in the county of my choice.  

I would have all my docs. run by the attorney, plus have an escrow company for collecting rent and paying the existing mortgage (be sure r.e. taxes are included with that payment also) so it doesn't fall into foreclosure.

I am trying to find someone before the tax season is among us. what is a normal rate for services, is it a once a yrs ordeal or monthly like an accountant. please help if you can I appreciate all, thanks Art. 

However, that's from a tax perspective.

However, when I add back the principal and the tax benefit my net return is around 8.5%-10.6% per year. 

the multi fam around the med school areas arent exactly luxurious areas... if you buy a place, get something leveraged and keep your money... example take 40k put 10% down on a 400k house around say braeswood, then put the rest in a 4 yr muni bond for it to collect tax free income while you are learning then pay your loan off or tuition off.