Have invested in ABQ with first purchase in 2020 - and that was based on my knowledge as a film/TV friendly area and affordability.

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

Hey @Benjamin Jones -  Fellow Japan-based investor here.  

On a commercial asset the value is directly based on the NOI (net operating income).

Start to evaluate deals based on the income approach and you'll do much better long term investing. 

I recommend that you find a trusted or recommended Mortgage Loan Originator (MLO), who can give you options for property-based loans (mostly investment loans) and they don't use your taxes but the P&L of the property.

With interest rates where they are at and no end in sight for any relief, I am curious what is going to happen to some of these deals that were holding out hoping for lower rates. 

Since my firm is an investor private client boutique, I do not share resources outside of my client base.

Not sure how old you are, and $200K in a 401K may be a little or a lot based on age, there may be so many implications taking out money from your $401k, especially if you are still working for this company.feel free to reach out for tax advice

There are financing options based on your specific circumstances.