I would then buy more properties and use that cash flow to pay off the 401k loan in time

Unless companies set up new operations in the city creating replacement jobs, all that will remain are lower-paying service sector jobs.

If a seller has a very low interest rate and the buyer can pay more than what it is worth and have no realtor commission, so more goes to the sellers pocket.Subject to has been around for decades. 

Trust me, you won't feel bad, especially because it is a home for yourself + an investment. 

And then there are others who cannot really be trusted.  

the period of time it was investment you will pay tax on. 

Would renters be willing to pay $2,600 a month, or would they be more inclined to purchase a home instead?

You have a lot of properties around the colleges as well that can be rented to students or since its next to a couple of Hospitals the Nurses, Doctors, and other medical staff pay good rents.

Pay more for something that is closer to rent ready so you don't get hit with big bills later.I hope that helps.

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