Quote from @Dustin Hagemeier: As someone in property management, I’m pleased to share that we’ve had significant success with the Section 8 program. [...]

@Jay Hinrichs i'm not planning on scaling this model very big.

I plan to use two of the bedrooms for Airbnb short-term rentals.

A construction-to-perm loan could work if you plan to hold the multifamily long-term, and depending on your market, there may be incentives for multifamily development.

I would just make sure to call the city and let them know your plans in full detail to make sure that you can do it.  

I plan to buy one or two more properties with the $200k, but then I will be out of capital.

Small shop brokers that have access to multiple programs so that they aren't beholden to one or just a few loan programs will typically get the most competitive product for the borrower. 

Re-titling real estate can get expensive with the misc. transactional fees associated with the process + you are at risk of the lender triggering the due on sale clause if you don't plan on refinancing the real estate.

I was in both architecture and real estate development for 18 years, so I'll be bringing that experience to the table.Looking to get back into the game with some big plans.

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.