Hi Melanie, I both own and manage in the area and to be honest, the market in Kissimmee/Davenport is tough right now unless you're willing to invest a lot of capital into high end theming. 

I also doubt very seriously that any brokerage/custodian is going to allow this kind of loan with 401k assets; it's likely going to need to be a 401k general purpose loan, which is highly regulated (as someone else mentioned). 

Hey Rebecca, I'm a broker and investor up in Sacramento and manage about 100 investment properties (STR and LTR).Many of my clients are high W2 earners seeking "bonus depreciation" to offset tax liability by investing in STR.

The deduction is optimized as values increase and can potentially offset the entire net investment (including down payment) for high wage earners.

But presuming you are talking about doing the above, this is a high risk strategy.

Most agency loans will expressly forbid such an arrangement, so if they found out, the odds of having the loan called would be very high. 

Even though the nightly rate is high, the RE has such high value that the margins are fairly tight.  

If one has high living expenses, cash flow doesn't mean much and I definitely understand going for appreciation first.

Highly recommend starting close to you so you can get eyes on the property if you do decide to purchase a true rental. 

So sad...... what is scary too is they only have them 10-20% contained and they are expected to get high winds again which can carry those embers pretty far. you also have to think these fire fighters etc. have been working around the clock and must be exhausted.