This is something that we will not tolerate as we would not expect our investors to tolerate it from us.In regards to the offense you took in us giving you your stats on income we did not mean for this to irritate you or be unprofessional in any way. 

Your loan officer should know what the company tolerances are and should be able to advise you BEFORE something like this happens. 

Outside of the tax implications, we're looking to see what others "risk tolerance" would be and where to allocate the funds. 

As landlords, we have to be tolerant. 

Yes and no, all depends on your investment goals and risk tolerance. 

It really depends on your risk tolerance.

Thanks for tolerating a newbie question that may have been discussed elsewhere.

@Alex Howard It is a matter of personal preference and risk tolerance but I think that I would open an account with etrade or something and take the money I would contribute to a 401k and put it into index funds.

My thought is the first step is to clearly define your objectives i.e long term vs short-term, emphasis on cash flow vs. appreciation, risk tolerance etc...Once you have all of that clearly defined, your path becomes more clear and defined.   

Not impossible though.I have private lenders who loan small amounts like this for a year at a time, but they have reasonably high risk tolerances and a whole lot of trust in me as a borrower.