Any advice or thoughts on this would be great, unfortunately my 401k is the only place I have enough money to use as a down payment or purchase a property with cash.

If you're looking for referrals, unfortunately I only know of providers in my states (CA/AZ/CO) but they're available in every state.

Removing that room would allow me to frame out a true master bedroom and even add space for a stackable washer and dryer insert. it would even give the home a bigger living room. unfortunately, the property is sitting on a crawl space foundation so I was thinking and hopefully, my mindset isn't too far fetched of maximizing the functionality of the space I have to work with.You're completely right I have come a long way to get cold feet. 

Thank you everyone for the feed back, unfortunately the deal didn't pan out.

Unfortunately, we did not have a good feel for their processing & underwriting – their process takes a minimum of 4 weeks, the sales person told us 14 days; we had an agreement with the Seller to close quickly, so we made the purchase in cash.

I am think that because I know that unfortunately you are not allowed to 'roll over' a ROTH IRA to a ROTH SOLO401K :-(.

Unfortunately, the costs they have to pay for undetected water damage and various other defects and many broken windows were much much higher.

@Devin Ramos Unfortunately there are very few, if any, 1% properties anymore.

@Jay Hinrichs mentioned fractionalizing, which is very popular here but, unfortunately, not legal in all states.

Unfortunately, I have not been able to find that definitive FHA guideline.