House hacking for your first REI endeavor is great not only to get your portfolio going but to learn the in's and out's of REI.   

I guess this could be said for any entrepreneurial endeavor generally. 

Purchase price: $35,000 Cash invested: $30,000 A one-hundred year old adobe home was transformed into a one-of-a-kind, 5-star, short term rental and recently appraised for $130,000 with a monthly income of $1,600.

That would kill my real estate endeavors unless I find another significant federal tax benefit in real estate.

One of the funnest projects I have worked on as far as transformation. 

In our properties in the C-/D+ 'hood,  we ripped up old carpet and redid the original hardwood, painted the walls, refinished the cabinets with rustoleum cabinet transformations, installed backsplashes with "sale priced" glass tile.

@Dmitriy Fomichenko is the ultimate resource for all 401k questions pertaining to real estate endeavors. 

So, it is flawed in it's initial state.I have no doubt that OP will turn it all around and make it a profitable endeavor eventually. 

No fear going into an area and helping to transform it for the better, and make some good money while doing so.

I HOPE everyone here on BP makes it into that 5% category, no matter what their endeavors are!