But presuming you are talking about doing the above, this is a high risk strategy.

If one has high living expenses, cash flow doesn't mean much and I definitely understand going for appreciation first.

If you find yourself in a similar situation, I highly recommend exploring the gift of equity deals and using sweat equity for renovations.

Additionally, high-income earners with modified adjusted gross income (MAGI) over $250,000 (married filing jointly) may be subject to the 3.8% Net Investment Income Tax (NIIT).For 2025, bonus depreciation is at 40%, so consider leveraging it for eligible property assets like appliances or fixtures to accelerate deductions.

I also doubt very seriously that any brokerage/custodian is going to allow this kind of loan with 401k assets; it's likely going to need to be a 401k general purpose loan, which is highly regulated (as someone else mentioned). 

While having high standards is important, it's worth considering that many Section 8 tenants might not meet requirements like a 640 credit score or $90,000 in household income.

But wanted to say that I highly recommend checking out REIA for Oh and/or Cincinnati and Dayton.

another issue it is about 18 months wait to get a Cabin started due to high demand for builder.  

The deduction is optimized as values increase and can potentially offset the entire net investment (including down payment) for high wage earners.

So sad...... what is scary too is they only have them 10-20% contained and they are expected to get high winds again which can carry those embers pretty far. you also have to think these fire fighters etc. have been working around the clock and must be exhausted.