I'd read up on the city's overall process and decided whether you're on board for their side of things. 

If there are two borrowers, then of course if a POA is used it would be limited to one borrower...If both borrowers were available and/or decided to attend they would both sign the loan and therefore no POA.2.

Then I decided to use five 401k loans for up to 50k to buy five houses.

Now what will be the plan after they move out ( if they decide to) is probably lease to a medical corps too since the close proximity to the big hospital.

Again, that is if they decide to go forward with the sale, I guess worst case is that I obtain the equity and a mortgage at 3.75%...

Best to start the process to sell.If you decide to keep it, you should talk with the contractors - you don't need to do high-end renovations for a rental.

After analyzing that information, I decided to pass on it.

What I saw in terms of development there convinced me that it is an exciting growing market, and I decided to get involved myself.

So, you could set it up, fund it, but then decide not to use it, and you'd never get hit with the annual flat fee. 

Decide specifically what are your real estate investment goals: property appreciation, cashflow etc.2.