Those lenders will want to see liquidity, CRE or RE experience and decent equity brought into the deal.

David spoke about cycles and how buying selling high and how he has liquidated his assets several times but what about capital gains tax?

I was think about liquidating my 401k which after taxes and penalties would net me about $95k and buying 4 properties I can rent out for $500 to $550.

After the 1st year, you can also liquidate after any quarter, which is nicer than holding individual loans.

I'm considering taking $90K against my first property at 5% to buy this one outright plus reno costs, and keep my (currently +6.5%) liquid investments liquid.

This "Liquid 100k" will be your key to HIGH LTV and low rate loans.Good luck! 

As far as funding goes I have around 50k liquid right now and a pretty good credit score and my parents are always willing to cosign with me if necessary.

Think of a property (REO or owner sold) which needs work to qualify for a mortgage and the seller does not want to invest any more $$ in the property.Most retail buyers don't have $25-75k liquid cash to make the repairs and even if they did, they would not find a conventional loan to purchase the property, so they would need cash or a 203k loan for the purchase and rehab.

Papa's unfixed, spraying Tom  cat doesn't end up 'being watched for the weekend' anymore.

Or should there be an agreement about specific conditions under which one can force liquidation?