Both would give you high returns but I'm not sure yet how well those areas would do when the market turns back down.

We were in WAY over our heads and the contractor was of no help.

What I'd bring to the table would be researching and sourcing properties, cash for down payments and other expenses, and design and some finishing material sourcing.

- Is it possible to avoid paying taxes if we just re-invest all the money to pay down the principal on the new mortgage (residential)?

For this purchase, I would love to use the new 5% down on lending if the 2-4 multi-family unit is "owner occupied." 

As a side not we planned to use a line of credit from the same lender as the down payment. 

Let me know if I can be of any assistance narrowing down your next search!

Hi Bob, Thank you for the heads up.

You simply call your 401k provider and let them know you are trying to borrow money to use as a down payment for your home purchase.

You can offset this with points.When the lenders provides you with an estimate of the loan along with all the charges pay specific attention to:Origination fee - This is whereLoan Points - Sometimes they force you to buy a point and they bring down your rate in returnapplication feeunderwritting feeBasically you want to compare how much you are paying in all of these and what interest rate they are giving you based on this costs.