Taking money out of 401k is expensive and you can’t get back the tax benefits of having the money passively grow for decades tax free until distribution. 

They offer better economies of scale and tend to be more manageable as you grow your portfolio.

I recently came across 1 acre asking for 314k in a very good residential and growing location, so the current owner has added 4 manufactured homes with 4 electrical meters, 4 septic tanks and only 1 water meter for all 4 homes, the homes are sitting on partial slab and partial pier & beam, he also added 2 storage sheds approx. 380sqft with the intention to make them ADUs they are still only the shell so I would have to get those ready to live in, so currently the 4 manufactured homes are being rented and bringing in 2800k a month, 3 of the homes are needing some TLC which could increment rents and possibly get me at 3600k a month, also being a 1ac lot this still leaves about 12,000sqft of raw land where you could build etc.So that is on the good side now the things I did not like so much, the lay out is poorly executed to where it makes it looked crammed up and not professional but it could be fixed.Another is that in reality there is only 4 livable units so that qualifies under a conventional loan but since they're are 6 units on the property the banks are wanting to take it as a commercial so we would have to move out the 2 storage sheds out in order to close as conventional.Another concern, technically you are only allowed to have one manufactured house or single wide in your property according to what I know but I know it could change according to zoning which I will investigate, so my question is has all this been accounted for and if so how can I verify it so it wont leave me in a bind further down the road, I currently asked my agent for the appraisal of the property to see if that might verify.Any recommendations?

If you want to grow aggressively then having the extra cash available to you today is more important.

However, I don't find the long vacancy particularly enjoyable, and I'm hoping to gain some insight and grow from the experience.Has anyone else experienced this, and what did you do to avoid it?

I think the whole point of holding a leveraged  good quality turnkey from a first-class team like Premier Properties/ REINation is to have your costs covered while your equity grows through a market cycle. 

Growing up on one of the Ranch's in Northern Ca my dad bought to develop 2k acres.

The most important thing you will need to keep in mind is to find a market that is growing in population and jobs. 

I tell ya those things grow legs every 2 years for some reason.

As you grow your portfolio, they can help you secure additional funding, refinance existing loans, and adapt to changing market conditions.Financing doesn’t have to be a roadblock to your real estate dreams.