That $30k 401k hit will be hard to overcome, I'd definitely look for ways to use that as your collateral on another loan instead. 

I tell myself that just getting to this point and buying my first property is a win itself by overcoming the fear that most have which prevents them from ever taking the plunge into REI.   

When you face adversity, go back to your roots. 

You got past the first big hurtle in real estate investment...overcoming analysis paralysis and actually doing deals.We are happy to help you in any way we can. 

sarcasm: check the local adverse possesion laws :)Seriously: if it looks like you could strike a deal with him, split or cover the locksmith fee with him to have keys made (by his request).

If you are risk adverse real estate, (especially out of state) is not for you.

I do know that lending can be complicated with a sponsor and a less experienced person on the deal, but I know a good lender to go through, so I am confident that it will be possible to overcome that obstacle.In addition, this is a relatively small deal.

The best way to overcome the age bias people have against you is to know more or less what you want to do. 

Dont use excuses to stop you from moving forward, simply find a way to make it possible. my intent wasn't to throw up roadblocks, just setting expectations. the expectation of banks is usually for the borrower to have skin in the game, this is not a hard and fast rule, but one that shouldn't be expected to overcome.

I am not adverse to risk but I see low spread between cap and debt as not worth the trouble.