@Van Lam - I think your plan to finish rehab and then rent them out a higher market rents makes sense to do first.

We've also been riding the wave of low interest rates for years and now that rates have risen investors have to be a little more creative with their investment plans and take a longer term view of stabilizing the building to make it a nice cash flowing property.Where are we going to find more 2-4 unit properties?

I would list the property and advise the tenants you are planning to sell. if they want to stay month to month, that's fine.

My plan would be use the 401k kind of like a hard money loan where I'd acquire the property, rehab it, then refinance long term, pay off the 401k loan and get it rented.

It sounds a lot like timeshares or partial ownership plans room the 1990’s and 2000’s.

The best advice I can give is this: if you weren’t planning on RE would you go to college?

Expect to remodel kitchen and baths and put new floors down, paint, knock down a wall to open the floor plan. 

It depends on what your plans for the property are. 

To simplify the existing lease I thought about asking the tenant if they would be ok modifying the addendums to get rid of the resident benefit package and the building protection plan. 

What was your backup plan on the Wrap, if the buyer stopped paying on the underlying mortgage?