You already feel you were pressured once to make a decision, don't compounded by letting yourself be pressured again. 

That is more than an inconvenience; it is a real problem.This problem gets compounded by the cycle of asset depreciation.

Best tool in the tool box.House hacking is the 8th wonder of the world just like compounding interest.

She got a job as a Pharmacist at Walgreens or CVS while my son formed a partnership with his best friend from fourth grade, borrowed enough money to start a compounding pharmacy and makes over $400K a year.

As many have voiced - you have minimal chance of recovery from the Builder, due to expiration of Builder and Structural Warranties , compounded by the fact property was also an "As Is" Foreclosure. 

Essentially, it allows you to use retirement money to purchase/create a business, and take money (profits) out of it NOW to avoid the additional penalty.Also keep in mind that the distributions would be hit at your highest tax rate... so if your distribution is "sizeable", your tax on it could be more than 25% (plus the 10% penalty of course).In the end, keep in mind that because of compounding interest, taking a tax hit now has a much bigger impact on your portfolio than taking a tax hit later.

I want to take advantage of the power of compounding interest.

You will then have to replace the roof, the damaged plywood, replace the saturated insulation, replace the drywall, and get it painted after applying joint tape, joint compound, and do some sanding.

take the money you earn - the CASH FLOW - you earn NOW from your real estate investing and invest it back into more real estate...as you compound your money - start putting money away in different investment vehicles like IRA's and the like, if you choose.but now...if you take out equity on your home - HELOC or refi - you pay 5% interest on that money and earn 5% in IRA...and in a CD, heck YOU'LL BE LOSING MONEY.and note - that i'm not figuring in INFLATION which is killing people who think that saving is investing...savings = 5% interest earned per annum (if you're lucky) MINUS 4% inflation - 30% taxes...you're money is "earning" next to nothing...

If you took the $5k and had a 12% return for 10yrs straight compounded it would be $15,529 which doesn't change your life.