It can still qualify if it's a fixer-upper, as long as the rental income from the property can cover the debt service.

NEVER borrow from a 401K, you are taking pre-taxed dollars and paying it back with after tax dollars, you do not get to return the loan with pre taxed dollars, in addition, some 401K plans do charge interest and maybe even fees, and lastly if you get laid off for some reason, it is a distribution with all the "fun consequences: tax at the last dollar rate, and if you are under 59.5 there is also the additional 10% penalty.Personally I like the HELOC, however you can also sell stocks and do tax harvesting there to offset gains if that is an option

Quote from @Lisa Albright: Hi All,Newbie here, just a quick question we are building an addition on our second home, we have a primary residence, and two rental properties.

I agree and additionally I'd recommend going down to the store and actually feeling them.

Spend what’s needed to upgrade with reliable mechanical systems, roof that doesn’t leak, remediate all mold; interior design modernized; in other words a place that will attract a higher income no hassle tenant.  

Guests love this upsell for the experience provided, they are more likely to share on social media, you can use the decorations as marketing, build relationships with local vendors, and provide extra income for your team. 

This could help decide if the income is enough.  

The city where you invest determines all long-term income characteristics.

Both are for tracking income/expense and generate reports (P&L, cash flow, but not balance sheet) only, not for listing, screening, collecting rent. 

Income from leveraged real estate or active business income.