I was buying from $40k to $50k range.

A concern I have is that there aren't a lot of four bedroom homes in our neighborhood (ie are we pricing our home out of comparable range).

If you have an emergency repair and lack sufficient funds in your SD account you may find yourself between a rock and a hard place.

@Anthony RussellThere is also a math/tax problem with this logic that most people overlook when they look at the 401k participant loan as cheap and easy money.You put the money into the plan on a tax-deferred basis.You borrow the money from the plan and pay the plan interest in the range of 4-5%.So far, so good.Your payments to the plan are made with after-tax dollars, thus eliminating the initial deferral benefit.  

Rob,Currently on the rent roll that was provided they range between $300 and $360 with a monthly total being $2,660..

There is zero inventory in this price range.

Agent was smart in listing at lowball price in an area w/comps in 225k range then asking for H & B within 4 days.  

Give your investors a range depending on these factors and you'll be more believable. 

I'm hoping a CPA or tax lawyer can tell me what the IRS has considered 'sufficient' in the past or if the basis is ever called into question?  

Average days in market in that range is 35.