I realize barrow is very isolated but did you try looking around in one of the more populated areas of AK before looking out of state?

The room is off to the right side of the house and is pretty isolated from the rest of the house so I want to convert it into a Airbnb to give it some use.

Without doing a deep dive on his reports yet, I put together a rough spreadsheet isolating the performance of our 401k balance over the next 30 years (when I hit 60) vs. an owner occupied 4-plex using a 3.5% down FHA loan.Please feel free to poke holes in my numbers or remind me of something I'm not considering... otherwise the decision seems pretty clear to me that we'd want to withdraw our 401k!

Most important thing is to open a separate checking/savings account for the rental to isolate the activity and make it easier come tax time, etc.

The further south you go, the more you are catering to the military population and isolating your clients. 

Sometimes you will find "isolated ground" receptacles (either all orange, or with an orange triangle on the outlet face) or "hospital grade" receptacles (with a green dot on the outlet face) for vast amounts of money. 

Primarily so the lease agreement and payments to and from me looks professional coming to/from an LLC account and all expenses and income are properly isolated to this property.

Chosen for it's isolation and altitude.

I love Ocracoke, personally - but it is isolated. 

If you can make 8+% investing with little risk in very passive options most people should require much more for isolating your capital into real estate and a less passive return.