However, I shudder at the popular suggestion to sell some of your investments for tax purposes, often coming from commission-based brokers and financial advisors.

It is possible to buy too many too fast and put yourself in a financial hardship.Have you ever heard of a startup store that done real good and added another store that done good?

Also post if you know something similar.Every investor comes from a different financial situation and has different financial goals and risk tolerance.

You are an unlicensed financial advisor.  

A detailed financial analysis and property inspection will help uncover any surprises. 

A 1031 Exchange is also known as the Tax- Deferred Exchange, which allows the different shareholders as well as different depositors to reinvest the profits that these people had acquired as well as earned, most particularly when it comes from the different financial transactions of the property that the investor had advanced without acquiring different taxes from the government.

@Michael Nguyen I bought a SFH first because I found a good one that made financial sense.

I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family.

Generally speaking solid insurance and a good umbrella policy will provide ample financial protection for most liabilities.

For something more robust, tools like Excel or online calculators from financial planning sites might better suit your needs.Your ROI Formula:ROI = (Net Cash Flow ÷ Total Out-of-Pocket Investment) × 100For your scenario:Net Cash Flow = Annual Rental Income - (Mortgage Payment + 401k Loan Payment + Other Expenses)Total Out-of-Pocket Investment = $40,000 cash + $50,000 loan payments over 5 years.I came across a piece in Bloomberg recently discussing creative financing, and they touched on ROI calculations for multiple loans.Personal anecdote: A buddy of mine leveraged a 401k loan for a fourplex.