They want a high cap rate when the local to out of state buyers with an exchange with tax consequences are willing to buy lower on the cap rate.If they want value add they are also up against developers and other seasoned investors in the states with a long track record already and relationships with these sellers.

Neither the seller or the agent have to deal with the consequences of placing a poor tenant.Signed, Possible Pessimist

BRRR would't necessarily be an exact option since you can't refinance and if you are flipping then there is the potential for a UBIT consequence.

I also let them face the consequences of the choices they make, no bailouts thank you.

You and I both know that NYC is flooded with foreign capital driving the RE prices through the roof, and consequently the surrounding communities are seeing an explosion in housing prices as rents force people from their neighborhoods.   

You need to be able to see the Big Picture and list of the consequences.

However be mindful of the tax consequences.  

Because tax law treats investment and owner occupied property differently, I would imagine that the only consequences would be in capital gains and depreciation changes.

Unless you want tax consequences, don't touch the 401K.

Income from leveraged portion of the property will be subject to taxation so be sure to consult with a knowledgeable CPA about tax consequences (this is not the case in a Solo 401k, which is one of the reasons it makes it superior to the IRA).