Yes, the limit on most 401k accounts is 50K (loan), you could cash out if really desperate, but you would pay taxes on early withdrawn. 

In summary, I agree with those who suggest leave it alone UNLESS you can get it at the normal wholesaler/investor discount, as if from a motivated/desperate Seller.

I have had a few clients in my market send out some 50-100k plus lowballs looking for a desperate seller and we are just not there yet.

There is no incentive to negotiate and there are a lot of risks and downsides to doing so that a lender won't mess with (Think discriminate or desperate treatment to one class of borrowers over another).Your lawyer is flat out high if he (she) really said that to you (Put it into an LLC).

If you are desperate to get a tenant because you have to have one then you could end up selecting a tenant that is not high quality and create more issues for yourself. 

Yes it seems everyone is trying to do it.If you buy cheap enough you can wholesale.This goes back to the whole argument that If I list a property for sale as a broker and market it properly I DON'T need a wholesaler.There will be plenty of people banging down my door to buy the deal.This perception that banks are DESPERATE to unload properties is not true.They are MOTIVATED and there is a huge difference.My sellers are not interested in people who don't have a pot to p*ss in.I tell them if you are a cash buyer then show me proof of funds valid within the last 30 days.If you are a corp of llc show me the documents along with the banks statement of POF that you are authorized to make decision for the corp and control the accounts.If you can't do those things and you are trying some guru's half baked seminar crap I don't have time for you.Especially when the next call I receive is from another buyer who does meet all the requirements above.If they are using a HML then it is cash but tied to an ARV condition so it's not an all cash AS-IS deal.Don't worry about competition as it will be there in any field.In every field you have the top class that makes most of the income and then some that make a decent wage and then those that are in poverty.

So I am in New York City, and I desperately want to buy my first rental property.

As for using the hard money lender to flip, it certainly is out of desperation, more so then a carefully crafted plan.

This broker/agent clearly values their time and the other 2 agents sounds like they are desperate to do a deal and have nothing else going on.The bottom line is if I find a deal as a broker such as this I wouldn't sell it for a paultry commission.I would lock the deal up myself and sell it to the highest bidder for a much higher spread.Example 50,000 property worth 100,000 when fixed up.Crappy 3% commission 1,500.Instead lock up to highest bidder at 60,000 and make 10,000 instead.If the investor balks about the fee there will be 10 more investors saying " I don't care what you make I just want this deal ".Investors sometimes get the big head and think they are the only game in town with cash.I can assure you this is not the case.As another broker I know in New York puts it " I work with a bunch of investors.The ones looking for good deals that I have a reasonable chance of finding go to the top of the list.The investors wanting amazing deals I still look out for but go to the bottom of the list in time allocation.

1) never allow cats, they can potentially do far more damage than dogs. 2) You can charge a higher rent for dogs and a deposit but if you do not allow dogs do not change your guidelines out of desperation.