Properties that are not performing well might fall into foreclosure but I really don't think we will see the full blown real estate crash that we experienced in 2008.

Please see the following additional considerations regarding taking the property as an "in-kind distribution":1.

@Cole BigbeeI see the 10000 sq ft as a sweet spot here in SE Alabama just as you describe.

Glad to see things opening up around the country.

(It should be easier to find a lender since the property is in your name and not an LLC.)For the cash-out refi, some lenders will want to see the property "seasoned" (meaning your name on title for at least 6 months) first. 

The numbers are tight , the cash flow is negative the 1st year (not looking good) , also I didn't see the other 3k for the refi closing so all in all (6k in closing cost) with the market like it is you should be able to make/ find a better deal. a couple of options would be to do the work yourself and cut the cost of the 20k you have to put in it, move into it and pull 80% out that would give you 124k, negotiate the price lower .

This could allow you to gain some development experience and see the whole process while being on active duty.  

I bought more today and definitely see the dip as a great opportunity.  

Of course it would be nice to see the prices come back down a bit too in this over heated market. 

I'd also like to see the law that requires me to treat every tenant (outside of protected classes) equally.