I am looking to purchase real estate for both investment purpose as well as to offset as much tax liability as possible. 

We have purchased 8 investment properties over the last 2 years, we strictly rent them out with section 8. 

I am not sure if I would make the same decision today.However, if you think you can purchase real estate and have a SIGNIFICANT delta as an investment, I would not cash out the 401k now to buy real estate. 

Purchase price: $105,000 Cash invested: $90,000 Property needed some serious rehab, from trees roots destroying the basement walls, to plumbing, electrical, to roofing, landscape.

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

Since you’re assuming this debt as part of the purchase, understanding the exact amount is critical.

Or what are other ways I can access this equity to purchase?  

If I purchase in California, I would most likely do a House Hack as my primarily.

I have 23 properties in Kenosha and earlier this year purchased two duplexes in Racine.

The seller's LLC pays capital gains tax and depreciation recapture, while the buyer's LLC uses the purchase price as the new cost basis.