The money that you end up owing to repay the loan over the 5 year term is now post income tax money unlike how you traditionally are supplying your 401k with pre-tax money.  

Hey Yianni, I would start with something either turnkey or light value-add, so you can start forming your team with less pressure and risk.

Let us know how it all turns out.

I may do more.

Crossing the lines may not provide proper liability protection.Personally, I just kept my SF rentals in my name and got excellent insurance coverage, $500K per property plus a $2M umbrella.

Yes, You can buy and asset, fix it up and rent it out to make money without you physically having to work for the money. 

This is why I use a loan broker...I want his experience with who can do what they say and who is a delay. 

I have been investing now for about 3 years in real estate, and I'm finding it harder, and harder to find deals for my clients and myself that work.  

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

I'm curious John Slater, how much did you invest in this club before doing your first deal?