In my research, default rates are pretty high amongst 401ks loans. 5) If you leave your employer and want to rollover your remaining balance to an IRA to be able to invest in real estate, known as a self-directed IRA, you have to either A) Payoff the loan first, or B) When you rollover funds, the loan balance will be immediately distributed to you, thus taxes and penalties, and you forfeit all that tax-advantaged money back in the account. 6) 401ks are generally covered under federal ERISA rules, which affords you additional creditor protections, from outside of the 401k judgments.

It’s important to clarify these two items because there are people who pursue these strategies with unreasonable expectations of anonymity and liability protection. 

With most insurance, it goes back to the peril that caused the damage, and whether you have protection for that specific peril or not. 

And on top of that, you how back end protection (assuming you buy these hypothetical future rentals right) in regards to have a strong and diversified total net equity position across your entire portfolio, as well as diversified amounts of monthly rental income that can help should there be any type of stabilization period that needs to take place if any value-add properties are in the mix.

Good old Uncle Sam.For most folks in the US, taxes are anywhere from 30-50% of their gross income every year.To protect yourself, you should do 2 key things.1.

Quote from @Sylvia Castellanos: Seller pays for title insurance to guarantee the buyer's protection from any title problems.The contract determines who pays closing costs.

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord.

Are there any other considerations to ensure appropriate liability protection in this arrangement? 

I mean even those of us that are brokers if we don't protect our position in writing we will get cut out.. 

Placing properties in an LLC can offer liability protection but consult a professional first.