I was told by Wagner that the builder is trying to refinance the construction loan as the cost of construction has increased. 

My biggest question is this: do you think I should continue to rent for now and prioritize tackling loans?

But it should only be attorney cost, the deed and recording fees (few hundred) , maybe a final water cert.

Finally, even as the landlords cash flow increases, depreciation should keep a major portion tax deferred. 

Hi Brad, I believe a 401k loan may be helpful in terms of putting toward a down payment if needed. 

Kieran, the best bet here is to refinance with a DSCR loan.

DCSR Loan

(more than likely) The rates are not locked in until final approval is given.

I also doubt very seriously that any brokerage/custodian is going to allow this kind of loan with 401k assets; it's likely going to need to be a 401k general purpose loan, which is highly regulated (as someone else mentioned). 

If the lender is licensed in the state you're buying in, then they can do the loan.