Now that the asset is in good shape and is making money, they are absolutely entitled to participate in the upside of the deal.

Welcome to BP and I'm glad you're participating in the world of house hackers.

This group requires a thicker skin to participate, but there's great people here as well. 

If there are any local meet ups - I would love to participate and add whatever value I can bring to the group.  

Also- when an agent is double ending a deal, as you suggest being the best way to get a deal; you might actually get the property, but there is no way they can property represent you in that deal- no one can truly double end a deal and do right by both participants. 

Here are the general considerations regarding 401k loans.401k Participant LoansIf your 401k plan allows for 401k participant loans, the maximum loan amount is equal to 50% of the balance up to $50k.

Since they match up to 5%, I'd be throwing money away by not participating.

In January I closed on a 3 unit property on the South Side of Chicago and the property was partially occupied, with 2 of the units being rented by Section 8 participants.

That new person is responsible for paying back the pool but also participating in the pool for the next person.

As always NoLo is a great resource here:“Property owners with modified adjusted gross incomes of $100,000 or less may deduct up to $25,000 in rental real estate losses per year if they "actively participate" in the rental activity.