I invest in the neighboring state of New Jersey and have 2 properties with a total of 4 units between the 2 and I am looking to scale.

.$2k per unit with 4 units ($8k total rent/month) that only needs $60k in rehab should be selling for a LOT more than $275k.

In the next 5-10 years, I plan to leave my current industry and transition to real estate full-time, so I’m especially interested in how this could impact that goal.Current FinancialsRoth 401(k) Balance: $105KContributions: $79KEarnings: $23.5KSalary: $109KContributing 6% annually ($545/month), with a 100% match for the first 3%Investment Growth Assumption: 8% per yearCurrent Rental Cash Flow (Pure Profit After All Expenses): $7,500/month (9 units)Potential New Property Cash Flow (Pure Profit After All Expenses): $1,300/monthCurrent Real Estate Portfolio Value: $1.4MAfter New Property: $1.7MWithdrawal Breakdown ($60K)Tax-Free Contributions: $45KTaxed Earnings: $13.4KWhy Only $13.4K Is Taxed and PenalizedMy Roth 401(k) balance is made up of:Total Balance: $105KContributions: $79K (75.24% of total)Earnings: $23.5K (22.38% of total)When withdrawing, the money comes out proportionally from contributions and earnings.

Even if the prosecutor doesn't get a conviction, the year and a half of court time and expenses of legal defense totally outweigh any short term benefit of getting an overpriced property by taking over someone's loan.

Gross income/rents * 11 rent multiplier = Total value.

I created a furnishing list for furnishing a rental property which includes Amazon links, prices that dynamically update from Amazon, and individual and total costs.

I totally understand!

Everyone's 401K rules are a little different but the way it works for most is you can borrow up to $50K or half the total balance, which ever number is smaller. 

On top of that, the deal included not just the house but three total lots, which added even more potential.

Cover for 150% of actual value and you are still out way ahead if you have a total loss.