And you get tagged hard with taxes including probably self employment as well as ordinary income. 

Don’t forget to factor in for health benefits, self-employment tax, etc. the bank will definitely adjust your contract salary to make apples to apples comparison.

I've rented to self employed people before, but we require the last two years' of filed tax returns. 

You do want a property that is close to employment, is not in a crime riddled neighborhood, and possibly some type of visibility.  

If you are unable to borrow from your plan, or if you need more than you can borrow, then you may be able to take a taxable distribution if you are age 59 1/2 or older, or no longer work for the employer that sponsors the plan.

I recently changed jobs, and I have $187,000 in my 401k at my previous employer.

So you want to rent to guys that aren't paying taxes, an "employer" that doesn't have them on the books, why?

It is one of our larger employers, also. 

My current financial situation offers me the opportunity to invest and my current employment offers a very flexible schedule with a lot of free time within my work week. ultimately I am looking to be a real estate investor / rehabber.

Brokers should consider employing a staff member who’s responsible for monitoring, updating and implementing information security systems and procedures at your company.