There are new construction homes about 2-3 miles away going for 190-200,000 but I think they may be a bit larger than what I am building.

That alone can kill a deal due to over the Max DTI limit.A cash out refinance is tax free and its an immediate liquid reserve so it can be used as an Asset or PITI reserves.

So that the tenant rent is providing a larger amount of return of capital. 

I believe their is a strategy here to acquire, stablize and liquidate along the way to build a self funding cash machine.  

I also think most markets won't see anywhere close 6% cap rates (for single family homes which is what I personally invest in).The questions you get to ask are then:Is the extra 4% worth the hassle of management and lack of liquidity.   

Meaning truly intrinsic(2x DSCR not 1x DSCR), then roll the dice and lever the minimum you need to get the deal done and understand to put more to reserves than anything else for the first 3-5 years from your current and new property.The risk:reward ratio is very low when you factor in a lack of liquidity.

That would set you up and make it easier to scale to another or larger project.

While adding compliance costs (filings, payroll), this structure is beneficial, especially for larger portfolios.This post does not create a CPA-Client relationship.

If we face any headwinds, liquid investments go first so probably crypto but then you bet equities will get pressed.

Real estate in a 401(k) is less liquid, so keep cash reserves for repairs or vacancies.