Instead:401(k) loans: They’re low-interest, and you’re paying yourself back.Roth rollovers If you can afford the taxes now, this gives future flexibility.Creative financing: I’ve seen clients leverage partnerships or seller financing to limit retirement fund withdrawals.One thing to consider: real estate markets today are vastly different from a decade ago.. so opportunities may require extra creativity.Have you looked into specific deals yet?

Echoing some of the comments from others on this thread and adding that the LLC is purely for asset protection and limiting your personal liability. 

In my state the standard contract used by realtors addresses this issue by allowing the agent to check a box specifically to limit the seller to keeping the EMD as opposed to going after "liquidated damages" like that.

This last bank limitation isn't a bad thing in my opinion because the long-term rental yields are low and what are you going to do if a tenant doesn't pay?

This limits your refi options when you take your scores down under 660. 

For those with limited funds, starting your journey through wholesaling, can be a smart move.

I immediately did the wrong thing and started assuming this person has limited time in investing in real estate (which was a correct assumption).

And there was no limit.

@John Clark I ran a nonprofit for 5 years and considered that option for this strategy, but, for a lot of reasons, it would be more limiting in the long-run.

I moved to Reno Tahoe, NV where you can be 3 hours from the beach and there are low property taxes, no state income tax and limited new construction.