Regarding tax-advantaged accounts, you're right--there's always a tipping point where conventional rules no longer apply. 

The conventional financing guidelines were designed with the primary end user in mind for the most part with slight accommodation for investment or non owner occupied use (75% of gross income and other simplistic rules).Good post Ruddy!

And much more...I am new to the forums, so if I broke any of the rules, I am sorry in advance.

I was laid off 3 days after my graduation and went back to driving a transit bus and working for the computing support department with the university, the two jobs that got me through my degree.

You just have to be firm on the issues and with any rules fairly enforce.  

Thanks for the continued support, Emmett, and congrats on all of your success and growing family!

The rule is actually that you have 180 days or until the date of your next tax filing.  

Mortgage is ~$500/mo, collecting rent of $600/mo...not much wiggle room with the 50% rule there.

I was hoping I'd find support for whether or not it would be a good idea to get hard money for a 25% down payment, traditional financing for the remaining 75%, with all profits (rent less both loan payments-HML and traditional financing, prop tax, insurance, and 10% maintenance fund) going to the hard money lender under the loan is paid off. 

Keep in mind that any existing assets you own could not be sold to the 401k because of the prohibited transaction rules.