I've just been reading Nassim Taleb lately and he talks about this kind of situation all the time. 

These minor details are the kind that distract people from the path of success. 

@Michael Baum You are right in saying that if guests break $2000 worth of stuff in a year, we have the wrong kind of guests.  

Thank you for your kind response!

My plan would be use the 401k kind of like a hard money loan where I'd acquire the property, rehab it, then refinance long term, pay off the 401k loan and get it rented.

There are actually THREE kinds of subject to transactions1- subject to existing mortgage without lender approval2- subject to existing mortgage WITH lender approval3- subject to existing mortgage as part of a seller financed wrap around mortgage.with #1 and #3 it’s in everyone’s interest to utilize a third party servicer, who collects and then distributes payments.  

Now I reach to others far ahead of me before investing in these kinds of syndications. 3.

You can be firm while still being kind.

Any kind of cashout refi or heloc will require income (ability to repay) and decent credit.

And thanks for those kind words.