For sure we will run into each other since we both are in the same field.

Just make sure you have your QI in place BEFORE you sell and never touch the money. 

After doing a handful you will get the hang of running numbers quick.The poster @Tyler Hall outlined some good steps above.

It's so much work to furnish and set up a short term rental.

I wish I had just invested that money actively.

In a great and popular location with rising rents and upside on price with renovations but also that will cost in the short term to improve the property. 

So, if I withdraw $60K, about 75.24% of that should come from contributions (since that’s how my balance is structured).75.24% of $60K = $45,014 → Comes from contributions (no tax or penalty)22.38% of $60K = $13,428 → Comes from earnings (subject to taxes & penalty)Taxes & Penalty on the Earnings Portion ($13.4K)Federal Income Tax (24%) → $3,219Early Withdrawal Penalty (10%) → $1,342Total Tax & Penalty: $4,562Net Cash After Taxes and Penalty Fee: $55,437The DilemmaIf I leave the money in my Roth 401(k), continue contributing $525/month, and earn 8% annually, my balance could grow to:$229,865 in 10 years$606,905 in 20 yearsBut if I buy the property, it could generate $15.6K/year in pure cash flow, plus appreciation.

It really makes a difference when you use pros that specialize in REI and how they can help your money work for you. 

If you want real numbers and insights, I have a ton of resources on that.Happy to answer any specific questions, but the short version?

She'll pay me market rate rent, thus keeping that money in the family, and the condo will eventually transition into a more traditional rental property that will support my retirement and that my children will one day inherit.