A well-chosen rental property offers numerous opportunities for enhancement, whether through cosmetic upgrades, energy-efficient installations, or other value-adding projects.

It's pretty reasonable and depending on the policy chosen, covers much more than a few hundred dollars for a security deposit.   

Here's a brief overview:My GoalObjective: Generate a monthly cash flow of $1,000.Initial Capital: $50,000 for down payments and renovations.Target Markets: Indianapolis, Buffalo, Cleveland, Cincinnati, and Philadelphia.Strategy OverviewProperty Focus: Duplexes, triplexes, or single-family homes suitable for a rent-by-room model, primarily targeting IT professionals and bankers.Market Selection Rationale: These cities were chosen for their balance of affordability and potential for rental income, with a specific interest in neighborhoods popular among young professionals.Financial Approach: Leverage the initial capital to acquire properties, possibly using FHA loans for lower down payments if applicable.Specific QueriesProperty Selection: Given the targeted tenant demographic (IT professionals and bankers), are there specific neighborhoods or property types you'd recommend within these cities?

We have chosen to invest in the Detroit Toledo area because of the great returns there. 

Outsourcing tenant screening and leasing processes can reduce turnover time and ensure qualified tenants are chosen.

Here are some factors to help you make an informed decision:SDIRA vs. e-QRP:SDIRA (Self-Directed Individual Retirement Account):Allows for a broader range of investment options, including real estate.Provides more control over investment decisions.Requires custodial services, and there may be fees associated with the SDIRA provider.Strict rules and regulations to ensure compliance with IRS guidelines.e-QRP (Enhanced Qualified Retirement Plan):Similar to a 401(k) but with enhanced features for greater flexibility.Generally, more streamlined than SDIRA with fewer administrative requirements.Allows for real estate investments, business investments, and more.May offer more control and fewer restrictions compared to SDIRA.Financing Considerations:Both SDIRA and e-QRP can be used for financing, but the terms and conditions may differ.Check with your chosen custodian or plan administrator to understand the borrowing rules and any potential penalties.Tax Implications:Understand the tax implications of using retirement funds for real estate investments.Consult with a tax professional to ensure compliance and to minimize any adverse tax consequences.Market Conditions:Consider the current real estate market conditions in the location where you plan to buy the beach house.Evaluate potential risks and rewards, especially in the context of your investment horizon.Long-Term Strategy:Since you're planning to work for another five years and potentially sell the house later, ensure that your investment aligns with your long-term financial goals.Interest Rates and Economic Conditions:Monitor interest rates and economic conditions, as they can impact the timing and profitability of your real estate investment.Professional Advice:Consult with financial advisors, tax professionals, and legal experts to get personalized advice based on your specific financial situation and goals.Due Diligence:Perform thorough due diligence on the property, renovation costs, potential rental income, and local market trends.Remember that real estate investments, especially with retirement funds, require careful planning and adherence to regulations.

This was one of the options given to me by my mortgage lender and the option that was chosen by the parent I am borrowing the money from.

See, you've chosen a result for persons here unless we "prove" different.

I'd say first identify a strategy and establish your Core 4.The main challenge I observed is that individuals often lack a clear end goal or strategy, or they select a market that doesn't align with their chosen strategy.

How is the starting bid chosen?