Seacoast NH, for example, has some great potential with short-term rental markets (Airbnb, VRBO), especially in towns like Portsmouth or Hampton, but the regulations can be a bit tricky.

They will tell you the potential.  

My goals are small multifamily to financial freedom with potential to scale to large multifamily for great success.

So, it would then potentially cost you a penalty for early withdrawl and also income tax owed on it.

@Jordan Kaylor, financing aside, how are you going about sourcing potential deals?

you'll be cash flow negative / losing money, potentially for years and years. 

I understand Vermont has slightly more stringent regulations to contend with but it would also be closer for us geographically and thus potentially easier to manage.

The deals are really so sparse that you can sit and wait and wait and wait for the right deal in a specific neighborhood or you can look at all potential deals across the Metroplex and beyond.  

I'll also check with the city on any potential liens, I think any inspection would have to be done after my $15k deposit so it would be a high risk, high potential reward type deal, and there is a 15+ bids already.

Now that you have the correct terminology, you can search for lots of potential solutions.